E-commerce a key player in UK GDP

E-commerce, online ads, cloud data storage and other internet-driven technologies are proving to be integral cogs that keep the UK’s gross domestic product turning, reports ZDNet. Author: Ashley Curtis

E-commerce, online ads, cloud data storage and other internet-driven technologies are proving to be integral cogs that keep the UK’s gross domestic product turning, reports ZDNet.

That’s according to ‘The $4.2 Trillion Opportunity’, a report by the Boston Consulting Group, which believes that internet-related spending accounted for £121 billion of the UK’s GDP in 2010; with the figure likely to rise to £225 billion by 2016.

When it comes to online retail, the sector accounted for just over £64 billion; meaning making an online payment to purchase goods is more popular now than it has ever been.

Furthermore, firms that utilise the internet in their marketing and sales campaigns grew three times faster than firms that didn’t, cites The Telegraph. As a result, their revenues grew by 12 per cent over the past three years compared to only four per cent for firms who made little to no use of the internet.

David Dean, co-author of the report and a Boston Consulting Group senior partner, commented on the figures: “Around the world SMEs which embrace the internet are growing faster and adding more jobs than those that don’t. By encouraging businesses to adopt the internet countries can improve their competitiveness and growth prospects.”

The same study also found the internet is worth a princely £2,175 a year to consumers; with most sacrificing alcohol, coffee or chocolate in order to keep the internet.

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