Crowned as one of the leading web economies within G20, the UK faces an uncertain future when it comes to whether this rapid growth will last or not.
There has been a great boom recently on the internet with web-based growth accounting for billions of extra revenue being pumped in to economies. The figure of $2.3 trillion, the internet’s worth in economic terms in 2010, is expected to double to almost $4 trillion by 2016 and it has come as a surprise to some to see the UK leading the way.
A study conducted by Boston Consulting Group found that the internet contributes over eight per cent to the UK economy, which is the largest amount of all the G20 countries.
Speaking about the research and its findings, partner at the Boston Consulting Group, Paul Zwillenberg, said, “The Internet’s contribution to UK GDP is high principally because of consumption – online retail in particular,” said Zwillenberg. “We believe there are a number of factors driving this, including: relatively high Internet penetration; a very competitive online retail market comprising both British high-street retailers, who very quickly developed their online presence, and online-only retailers including the major US companies for whom our shared language made the UK their obvious first non-US market.”
The report was supplemented by news from WorldPay, which stated that around 60 per cent of consumers do their shopping online up to three times per month with 40 per cent using it for purchases more than four times per month.