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The Internet is a vast mosaic of economic activity, ranging from millions of daily online transactions and communications to smartphone downloads of TV shows. But little is known about how the web in its entirety contributes to global growth, productivity, and employment.
New McKinsey research into the Internet economies of the G-8 nations as well as Brazil, China, India, South Korea, and Sweden finds that the web accounts for a significant and growing portion of global GDP. Indeed, if measured as a sector, Internet-related consumption and expenditure is now bigger than agriculture or energy. On average, the Internet contributes 3.4 percent to GDP in the 13 countries covered by the research—an amount the size of Spain or Canada in terms of GDP, and growing at a faster rate than that of Brazil.
Research prepared by the McKinsey Global Institute and McKinsey's Technology, Media and Telecommunications Practices as part of a knowledge partnership with the e-G8 Forum, offers the first quantitative assessment of the impact of the Internet on GDP and growth, while also considering the most relevant tools governments and businesses can use to get the most benefit from the digital transformation. To assess the Internet's contribution to the global economy, the report analyzes two primary sources of value: consumption and supply. The report draws on a macroeconomic approach used in national accounts to calculate the contribution of GDP; a statistical econometric approach; and a microeconomic approach, analyzing the results of a survey of 4,800 small and medium-size enterprises in a number of different countries.