UK internet economy worth £100bn, says Google

The UK online industry is worth £100bn a year to the economy, according to a new report by Google and The Boston Consulting Group (BCG).

“The Connected Kingdom: How the Internet Is Transforming the U.K. Economy” report says the internet economy makes up 7.2% of the country’s GDP, and will rise to 10% by 2015.

It also reveals the UK is the world’s leading ecommerce economy, exporting £2.80 in goods for every £1 imported. This compares favourably to the offline world, where for every £1 imported only 90p is exported.

The report also estimates 250,000 UK jobs are solely related to driving the internet economy, with an annual turnover of £50bn.

Approximately 62% (31million) of UK adults bought products or services online in the last year, while £50bn was spent on goods and travel.

Over 19 million households (73% of the UK population) have a broadband connection, while 31% of people have used their mobiles to go online.

Matt Brittin, managing director for Google in the UK and Ireland, says: “The sector has come of age, and with great prospects for further growth the UK internet economy will be vital to the UK’s future prosperity.”

Paul Zwillenberg, partner with BCG in London, adds: “Whether they are driving international expansion, improving their interactions with customers or the efficiency of their supply chains, UK companies are increasingly embracing the internet’s potential. Several industries including media, travel, insurance, and fashion, are being transformed by it.”

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