According to a new study the internet contributes 8.3% to the British economy, making it the largest internet sector out of all G20 major countries.
The UK was found to be the leader in internet economy across the G20. The study predicts the entire G-20 Internet economy will be over $4 trillion in 2016; almost doubling from 2010 in which it was $2.3 trillion.
The economic contribution by the web to UK GDP was estimated to be over £121bn, performing higher than construction, healthcare education sectors. If the internet were a separate sector it would be the fifth largest in the UK.
The internet sector is estimated to continue its rapid growth with predictions of over £220bn by 2016 according to the study by Boston Consulting Group.
"It comes as no surprise to find the British internet economy is booming," said Eric Abensur, CEO at Venda, a global provider of multi-channel commerce solutions. "As broadband penetration, pervasiveness of mobile devices and public Wi-Fi connectivity increase we're seeing huge growth in online sales amongst our client base, far higher than stated by the Boston Consulting Group."
The UK web economy is predicted to stay ahead in growth over the next four years with an estimated 11% rise; higher than the U.S. projected growth of 5.4% and China with 6.9%.
The research suggested that small and medium businesses focusing on the internet sector have seen a 12.5% growth every year for the past three years.
"When it comes to George Osborne's upcoming Budget statement, the Government would do well to acknowledge and build upon the wealth generated by the internet," said Abensur." Improving internet access and speed alongside helping businesses make the move to online could see the internet become a powerful catalyst for growth as well as a truly significant source of income."
The study also found that the internet is worth £2,175 a year to consumers with 78% reporting they would give up coffee and 65% would give up alcohol, rather than lose internet access.
Please follow this author on Twitter @Tineka_S or comment below.