BCG Suggests Growth Rates for Internet Economy in Developing Countries

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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
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