Internet Access Contributes More to UK GDP than any other G20 Country

The Boston Consulting Group (BCG), a global management consultancy firm, has reported that broadband internet access and the online industry contributed 8.3% (£121bn) to the UK economy (Gross Domestic Product) in 2010 and will grow by 11% each year for the next four years to hit £221bn by 2016.

The figures, which currently equate to more than £2,000 per person (2010), rank us top of any other G20 country (the top 20 largest world economies) for eCommerce. By comparison China’s “internet economy” is expected to grow by an average of 6.9% and the USA will rise by just 5.4% over the same four year period (in fairness the USA’s eCommerce market is also the most matured).

The Governments Minister for Communications, Ed Vaizey, said (Sky News):

“The best super-fast broadband in Europe doesn’t just include the headline speeds, it also includes the cost.

We have a very competitive telecoms market in the UK which means actually most people can access broadband at a decent price.

That’s a very important factor. There’s no point having a super-fast pipe going past your house if you can’t actually connect on to it.”

Apparently 13.5% of all purchases were done online in 2010 and this will hit 23% by 2016, which might not be good news for shops in your local high street. According to BCG’s study, if the internet had its own sector then it would be the country’s 5th largest (ahead of construction, healthcare and education).

It’s easy to see why governments around the world are becoming increasingly keen to connect up as many citizens as possible through major broadband development projects. The UK governments Broadband Delivery UK (BDUK) office is aiming for 90% of people to be within reach of a superfast broadband (24Mbps+) service by 2015 and Europe’s Digital Agenda wants 100% to have access to speeds of at least 30Mbps by 2020.