How much does the internet contribute to the economies of G20 countries?

MUCH of the world may still (or again) be in recession, but the internet keeps growing—and so does its economic weight. In the G20 countries, the internet economy will grow at more than 10% annually for the next five years and by 2016 reach $4.2 trillion, or 5.3% of GDP—up from $2.3 trillion and 4.1% in 2010, according to a recent report by the Boston Consulting Group (BCG). But there are big differences between countries. Britain leads the pack. Its internet economy is now bigger than its construction and education sectors, mainly thanks to the popularity of e-commerce. To paraphrase Adam Smith, the country has become a nation of digital shopkeepers. China and, to some extent, India stand out thanks to internet-related exports in goods and services, respectively. South Korea and Japan are also strong in both e-commerce and exports. Europe punches below its weight, mainly because its internet economy is held back by a lack of a single digital market. If the European Commission succeeds in creating one, the old continent may be able to pull ahead of the new one by 2016.