GDP has for many years been the accepted instrument for measuring the market value of all officially recognized goods and services for each specific country.
Whilst the mathematical equations that combine to produce a figure that defines whether a country is performing well from a financial and standard of living point of view, are probably best left to the economists to figure out, many of us consider the result to be a reasonable barometer.
Whilst the method for measuring the Gross Domestic Product for a country has been with us since the 1940s and still basically follows a formula that was laid out decades ago, the world has of course changed considerably during the intervening period, and one of the major changes to how we work and fuel our economy has been the advent of the internet in all our lives. See the infographic below for more on this.
Despite this fundamental change in how we all communicate and trade with each other by using the internet, it may still surprise some people to discover exactly the extent of how the digital world now fuels the physical economy.
In mature economies, it is particularly interesting to note that the internet accounts for 21% of GDP growth, if you combine the figures collated for the last five years. There is certainly no sign of the stellar growth of the internet slowing down and with 2 billion worldwide users already and 200 million more new users getting connected every 12 months, it is clear that the digital world has a pivotal role to play in how strong our respective country’s GDP performance will look in the foreseeable future.
Click on the infographic from FE International to enlarge it