BCG Suggests Growth Rates for Internet Economy in Developing Countries

By

The Boston Consulting Group (BCG), a firm that offers its own take on what will happen next and how to prepare for today’s economy, has forecasted that “the UK Internet economy will grow to £225 billion by 2016.” From BCG’s perspective, the United Kingdom will retain its top position because it continues to see strong economic growth as shown by the rise in per capita gross domestic product (GDP) income. The “Burgeoning E-Commerce Puts U.K. Out in Front” of other developed nations in the G-20.

By BCG figures, “The Internet Economy” will grow more than 10 percent a year through 2016 in the G-20 nations. The most rapid growth of the Internet economy is predicated to come from developing markets, led by India (growth rates = 23 percent) and Argentina (growth rates = 24.3 percent).

In the United Kingdom, the Internet accounts for 7.2 percent of the GDP. Not only are they leaders among developing countries in e-GDP percent, they lead the world in e-commerce. Results like this imply the Internet is vital to the UK's future prosperity, it’s a staple of UK economy today, and it is transforming the UK’s economy; the BCG report shows how “the Internet's contribution to GDP is set to grow by about 10 percent annually, reaching 10 percent of GDP by 2015.”  

According to a Landmark report, the Internet is worth GBP 100 billion a year to the UK economy; this is thanks to the sales growth seen from Internet consumption. Not only is the Internet economy a contributor to UK’s GDP growth rates, it also plays a fundamental part of everyday life in the UK with a significant role in driving economic growth for Internet-based businesses.

According to Paul Zwillenberg, a BCG partner and co-author of the report, with the Internet economy growing, there will be a positive impact on jobs creation. This is good news for IT professionals with e-commerce skills.

Over the last decade, as seen from the BCG report, many developing countries have felt the impact of the Internet: it has contributed to their growth and diversification of their economies. The report not only shows how countries will rely on the Internet but suggests how important it is for industries, over the next few years at least, to turn to Internet and e-commerce to sustain economic growth.






Edited by Jennifer Russell
Get stories like this delivered straight to your inbox. [Free eNews Subscription]

Contributing Writer

SHARE THIS ARTICLE
Related Articles

ChatGPT Isn't Really AI: Here's Why

By: Contributing Writer    4/17/2024

ChatGPT is the biggest talking point in the world of AI, but is it actually artificial intelligence? Click here to find out the truth behind ChatGPT.

Read More

Revolutionizing Home Energy Management: The Partnership of Hub Controls and Four Square/TRE

By: Reece Loftus    4/16/2024

Through a recently announced partnership with manufacturer Four Square/TRE, Hub Controls is set to redefine the landscape of home energy management in…

Read More

4 Benefits of Time Tracking Software for Small Businesses

By: Contributing Writer    4/16/2024

Time tracking is invaluable for every business's success. It ensures teams and time are well managed. While you can do manual time tracking, it's time…

Read More

How the Terraform Registry Helps DevOps Teams Increase Efficiency

By: Contributing Writer    4/16/2024

A key component to HashiCorp's Terraform infrastructure-as-code (IaC) ecosystem, the Terraform Registry made it to the news in late 2023 when changes …

Read More

Nightmares, No More: New CanineAlert Device for Service Dogs Helps Reduce PTSD for Owners, Particularly Veterans

By: Alex Passett    4/11/2024

Canine Companions, a nonprofit organization that transforms the lives of veterans (and others) suffering PTSD with vigilant service dogs, has debuted …

Read More