The Daily Telegraph has reported that the UK has the most developed digital economy in the world with the largest online e-commerce market per person.

Researchers, commissioned by Google, have found that online business is worth a staggering £100bn a year with internet revenue accounting for 7.2% of the UK’s GDP.

The UK also has one of the largest online advertising market world wide, second only to the US. The research also found that if the internet was an economic sector in its own right it would be the fifth largest – outweighing the construction, transport and utilities industries in this country.

Google’s survey found that almost two thirds of the £100bn figure is due to internet consumption and that the remainder of the money is from the UK’s internet infrastructure, government IT spending and net exports.

For every £1 that is spent online, £2.80 is exported contributing to the UK’s position as the world’s leading nation for e-commerce. The offline economy exports 90p for every £1 imported.

Analysts at Boston Consulting Group said that the amount by which the internet contributes to GDP is expected to increase by around 10% each year and will make up 10% of GDP by 2015 – although this is mainly a result of an increase in online consumption.

Please note the views expressed in this blog are the views of the author, Andre Brown and do not represent the view of Locayta, its employees or its shareholders. For more information about Locayta, visit www.locayta.com