[LINK] Internet rivals iron ore in economic value: report

[Kim Holburn]

http://www.abc.net.au/news/2011-08-03/internet-rivals-iron-ore/2821324?section=business

> Internet rivals iron ore in economic value: report
> 
> Online business reporter Michael Janda
> Updated August 03, 2011 14:32:17
> 
>  Video: Internet contributed $50b to Australia's economy (ABC News)
> Photo: Internet related industries are forecast to grow at around double the pace of the overall Australian economy. (Nic MacBean, file photo: ABC News)
> Audio: Australian digital economy tops $50b (AM)
> Map: Australia
> A report shows the internet has become as valuable as iron ore exports to the Australian economy.
> 
> The study by Deloitte Access economics, funded by Google Australia, estimates the internet contributed $50 billion to Australia's gross domestic product last year.
> 
> That would give the internet a 3.6 per cent share of GDP, which the report's authors say is roughly equivalent to iron ore exports.
> 
> The report forecasts that the internet's contribution to Australia's economy will keep growing by around 7 per cent a year to reach $70 billion by 2016.
> 
> The study also estimates considerable benefits that are not fully captured in the traditional GDP figure, including productivity benefits worth around $27 billion and household benefits worth more than $50 billion.
> 
> However, the report's authors stress that some of these benefits are captured in the GDP number, making it impossible to come up with any kind of precise estimate of how much value the internet adds to Australia's economy.
> 
> "The internet saves people time through activities like online banking and provides access to a much greater variety of goods, services, and information. It transforms the way business and government function," said Deloitte Access Economics director Ric Simes, who led the team writing the report.
> 
> "The internet is having a profound effect on how the economy and society works in many ways that we don't fully yet understand."
> 
> Some of the benefits to households included an estimated $7 billion worth of time saved when searching for information, $8 billion in time saved doing mundane tasks more quickly online, $16 billion due to a greater variety of purchases being available than before the internet, and $22 billion from using the internet for recreation.
> 
> The Deloitte Access report estimates that Australia lies in the middle of nations when estimating the internet's contribution to the economy, with the local 3.6 per cent figure similar to the 3.7 per cent contribution estimated in France's economy using similar methodology.
> 
> However, internet industries make up a larger share of the economy in the UK (7.2 per cent), Sweden (6.6 per cent) and Hong Kong (5.9 per cent).
> 
> The report estimates that there are 190,000 people in Australia employed in jobs directly related to the internet, such as software firms, internet service providers and e-commerce and advertising.


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Kim Holburn
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