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Internet economy contributes 1,9% to GDP

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The Interet ecoomy contributed R51-billion to the South African economy in 2010, representing 1,9% of GDP – and it is expected to almost double to R103-billion by 2016.

This is according to the Boston Consuting Group’s Connected World series, which found that the total size of the G-20 Internet economy is currently about $2,3-trillion – or 4,1% of the total economy – and is expected to rise to $4,2-trilion, or 5,3% of GDP.

The report, “The $4,2-trillion Opportnity: The Internet Ecoomy in the G-20”, finds that if the Internet were a sector in South Africa, it would be almost as big as utilities.

South Africa’s Internet economy growth rate of 12,6% commpares to an international growth rate of 17,8% in other developing economies

In 2010, the share of total retail in South Africa carried out online was 1,2% and is projected to reach 1,5% by 2016.

In addition, the Internet influences only an additional 1,2% of total retail from connected consumers researching online and buying offline.

Asked how much they would have to be paid to live without Internet, South African respondents said an average of $9 804.00 per year – or three times more than they pay for access and services.

Asked if they would forgo showering for a year in order to keep Internet access, 13% of South African online consumers said yes; 74% said they would forgo chocolate; 63% coffee; and 77% would give up alcohol.