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Britain has the world’s largest internet economy, worth £100bn a year, with internet revenue making up 7.2% of gross domestic product (GDP), according to a study by Google.
The study, commissioned by Google, revealed that the majority of the £100bn contribution is being driven by small and medium sized enterprises alongside larger businesses, across all industries in the UK.
For every £1 spent online to import goods, £2.80 is exported helping to make Britain the world’s leading nation for e-commerce.
The internet is pervasive in the UK economy today, more so than in most advanced countries Furthermore, a quarter of a million workers are employed by internet companies, with small businesses that have a strong online presence likely to report almost four times more growth than those that don’t.
The report says that 250,000 people are employed by e-commerce companies in the UK, and Britain ranks sixth among the world’s major economies in terms of an ‘e-intensity index’ – a measure of the reach and depth of the internet. That put the country above the likes of Germany, the US and France, but lagging behind Japan, South Korea, the Netherlands and Denmark.
73% of UK households have an internet connection and 62% of all adults – 31 million – bought goods or services online in the past year.
“The internet is pervasive in the UK economy today, more so than in most advanced countries,” said Paul Zwillenberg, partner with BCG in London.
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