UK internet economy 'worth billions'

image captionThe internet contributes £100bn to the UK economy, the study says





Central pillar



The report, The Connected Kingdom: How the internet is transforming the UK, says that the internet's contribution to GDP is set to grow by about 10% annually, reaching 10% of GDP by 2015.

The UK, according to the report, is the world's leading nation for e-commerce. For every £1 spent online to import goods, £2.80 is exported.

"This is the opposite of the trend seen in the offline economy, which exports 90p for every £1 imported," the report says.

Internet companies play a vital role in employment with an estimated 250,000 staff, the report finds.


The report also attempts to compare the UK to other countries in the Organisation for Economic Co-operation and Development (OECD).

Under its scoring system, the UK ranks sixth, above Germany, the US and France. The highest ranked country is Denmark.


"Several industries - including media, travel, insurance and fashion - are being transformed by it."

Matt Brittin, managing director of Google UK, said: "The internet is a central pillar of the UK's economy.

"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," he added.

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