Photo: 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.
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.
In high-growth countries it's a lower percentage of growth--but Internet growth in absolute amounts is still huge
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.
This chart shows the surplus accruing to consumers from the Internet per user per month. Pretty big.
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