The Group of 20 (G20), a forum of finance ministers from 19 prominent countries as well as the European Union, was formed in 1999. The purpose of the forum was to broaden the dialogue between countries on key economic and financial policy issues. Since the Internet accounts for one of the largest economies in the world with a revenue of over $8 trillion per year, it is often an important top for discussion. A subject of great concern for these audiences is the projected growth of the Internet internationally and in which countries this growth will predominantly occur.
The Internet Economy
The Internet economy has accounted for the highest percentage of National Gross Domestic Product (GDP) in the UK followed by South Korea with 8.3% and China with 5.5% and in each of these countries the Internet ranks among the top six industry sectors for the country it is in.
Hard as it may be to believe, the United States is already falling behind in Internet use and consumer buying. In 2012 the US came in second to Sweden, listed as being the country where consumers used the Internet the most, followed by the UK in third position. This low ranking may come as a result of fewer households in the US having home computers, according to a study led by Sir Tim Berners-Lee – the English computer scientist credited with inventing the web in 1989. The study suggests this will negatively impact Internet revenue for the US in the future.
According to studies performed by the Boston Consulting Group (BCG) and discussed by the G20, the Internet economy is expected to grow by about 10% in developed countries like the UK and the USA over the next 5 years. However, developing nations like Argentina and India expect to see an even higher jump to about 24% a year.
The Small to Medium Enterprise Stands to Receive the Most Benefit
This analysis has concluded that in countries such as China, Germany, France, and Turkey, it is the small to medium businesses that will see the most benefit, as their projected growth rate increases by about 22% over those businesses that have no online presence.
Both G20 and the BCG suggest that businesses in all countries embrace and expand their internet markets as statistics show that these businesses grow faster than those that don’t. Businesses in countries that expand their high-speed Internet networks will also see an increase in revenue by about 10% to 20% over the next 5 years. But countries that don’t focus on Internet expansion will see a decline or a stagnation of revenue, missing a vital opportunity to build a significant net-based economy.
Author Bio: Jason Stevens from jason-stevens.com / Freelance web developer, tech writer and follower of cloud computing trends. Follow him on Twitter: @_jason_stevens_.
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