The Internet Is 20% Of Economic Growth

mckinsey report internet

[credit provider=”McKinsey Global Institute”]

The Internet is huge. Most people can agree on that at this point. But most people don’t realise how big it is in relation to the global economy. That’s what a new McKinsey report, released this morning at the eG8 Forum, looks at. 

And it turns out, the Internet is a huge driver of economic growth. Internet as a sector is about 3% of GDP, or bigger than agriculture or energy, and represents over 20% of economic growth in the past 5 years, and growing. For every job that the Internet destroys, 2.6 new net jobs are created. 

The whole report is downloadable as a 50-odd page PDF here, but we’ve pulled out the best charts for you. They’re fascinating. 

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[slide
permalink=”the-internet-has-a-34-share-of-gdp-in-the-countries-mckinsey-analyzed-1″
title=”The Internet has a 3.4% share of GDP in the countries McKinsey analysed”
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[slide
permalink=”thats-bigger-than-agriculture-or-utilities-which-tend-to-be-subsidized-to-the-hilt-by-the-way-2″
title=”That’s bigger than agriculture or utilities (which tend to be subsidized to the hilt, by the way)”
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[slide
permalink=”the-internet-is-a-big-contributor-to-gdp-3″
title=”The Internet is a big contributor to GDP”
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[slide
permalink=”but-where-its-most-striking-is-how-much-it-contributes-to-gdp-growth-21-in-mature-countries-more-in-the-past-5-years-than-previously-4″
title=”But where it’s most striking is how much it contributes to GDP growth: 21% in mature countries, more in the past 5 years than previously.”
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[slide
permalink=”in-high-growth-countries-its-a-lower-percentage-of-growth-but-internet-growth-in-absolute-amounts-is-still-huge-5″
title=”In high-growth countries it’s a lower percentage of growth–but Internet growth in absolute amounts is still huge”
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[slide
permalink=”small-businesses-who-use-the-internet-a-lot-do-much-much-better-than-their-competitors-6″
title=”Small businesses who use the Internet a lot do much, much better than their competitors”
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[slide
permalink=”most-of-the-value-of-the-internet-is-actually-captured-by-traditional-companies-for-most-established-businesses-the-internet-is-more-of-an-opportunity-than-a-threat-7″
title=”Most of the value of the Internet is actually captured by traditional companies. For most established businesses, the Internet is more of an opportunity than a threat.”
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[slide
permalink=”this-chart-shows-the-surplus-accruing-to-consumers-from-the-internet-per-user-per-month-pretty-big-8″
title=”This chart shows the surplus accruing to consumers from the Internet per user per month. Pretty big.”
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[slide
permalink=”the-us-is-still-a-leader-in-the-internet-as-shown-by-what-mckinsey-calls-its-internet-leadership-supply-index-9″
title=”The US is still a leader in the Internet, as shown by what McKinsey calls its “Internet leadership supply index””
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[slide
permalink=”countries-that-create-strong-internet-ecosystems-reap-huge-economic-benefits-10″
title=”Countries that create strong Internet ecosystems reap huge economic benefits”
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[slide
permalink=”heres-what-mckinsey-says-is-most-important-to-build-an-internet-ecosystem-11″
title=”Here’s what McKinsey says is most important to build an Internet ecosystem”
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[slide
permalink=”the-us-and-sweden-have-the-best-internet-ecosystems-12″
title=”The US and Sweden have the best Internet ecosystems”
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[slide
permalink=”only-the-us-has-built-a-successfully-mixed-internet-economy-with-value-at-the-bottom-telecom-and-at-the-top-internet-services-of-the-stack-13″
title=”Only the US has built a successfully “mixed” Internet economy with value at the bottom (telecom) and at the top (Internet, services) of the stack”
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image=”http://static.businessinsider.com/image/4ddba0ce4bd7c8a929010000/image.jpg”
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[slide
permalink=”now-dont-miss-14″
title=”Now, don’t miss”
content=”See Who The Big Hitters At eG8 Are →
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[/slideshow]