Five billion people, or 63.1% of the global population, are now connected to the internet. With massive eCommerce transactions and the web presence of both small and big businesses, the internet has transformed people’s everyday lives. This transformation includes the way people work, live and socialize. On a macro scale, the internet has shaped the development and growth of a country. Previously, it was assumed that the internet would only be a game changer in the communication sector.
However, now it has changed the global landscape by touching all the aspects of economic growth. In the communication sector, the internet has successfully bridged the game of geographical barriers. In terms of economic wealth, it is now one of the most significant contributors to wealth generation. The internet has successfully made businesses more productive, created more job opportunities and has consequently increased the standard of living. However, having a good internet speed is equally important as having internet accessibility to extract the maximum benefit. You can use platforms such as BT to check the internet speed. The impact of the internet is on all of us, including individuals, businesses and the government. Here is how the internet is contributing to wealth generation.
The Impact Of The Internet On GDP
The internet is rapidly growing the data-driven digital economy. It has a significant impact both on the supply and demand side of the economy. It improves accessibility to the market and ensures the availability of quality information. The internet helps enhance the productivity of both workers and businesses, which then directly impacts a country’s GDP. Here is an example of why the internet significantly contributes to GDP. According to a study, the internet economy’s contribution to the US GDP resulted in a growth of 22% in a year since 2016. It is enormous because, on average, the nation’s economy only witnesses a growth of 2-3%.
The impact of the internet on the GDP is higher in developed countries because of better internet connectivity and accessibility. Therefore, developing and underdeveloped countries need to improve internet connectivity along with internet speed, verifiable by Speed Test, to grow their GDP. Furthermore, the internet paves the way for global trade, which helps businesses expand into new markets and, subsequently, increase their revenue potential.
A Powerful Catalyst For Job Creation
Even though it has destroyed a few jobs, the internet has created many more jobs. For every one job which the internet has killed, it produced 2.6 jobs. Therefore, the overall internet has created more job opportunities. It has opened new employment opportunities in different sectors, such as e-commerce, online content creation, web development and digital marketing. With the help of social media platforms, the internet has given birth to a thriving creator economy.
In addition, the internet allowed the possibility of e-commerce along with its growth. Therefore, not only is it benefitting the country by giving more choices to consumers, but it is also creating new jobs and industries. For example, small businesses can sell their products on eCommerce. Also, this business has multiple components; therefore, the job increases in different departments such as product management and logistics.
A Driver Of Economic Modernization
Traditional activities, which were manually done, are now modernized with the help of the internet. It facilitates global trade and makes globalization meaningful. Thanks to the internet, a small business in a less developed country can now access the global market. It is also shaping new business models to expand the customer reach.
Furthermore, it is also driving economic modernization through internet technology which improves the competitiveness and efficiency of a business. Again, with access to information and knowledge, any business can stay updated with industry trends. Also, the internet is a critical player in the gig economy, which resulted in modern and effective business models.
Upskilling Of Workers
The role of the internet in building skills is profound. With only internet connectivity, anyone can upskill themselves to land a job. There are plenty of free online education and training courses, which significantly eliminate the requirement of formal education. With open learning platforms, open education resources, online tutorials and how-to guides, the internet has improved the accessibility to required resources for upskilling the workers.
The internet is contributing to wealth generation by increasing the productivity of workers and businesses. In addition, it promotes innovation and further facilitates global trade.