Internet-related industries to fuel GDP growth
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INTERNET related industries and services will add 0.3 and 1.0 percentage points to China’s annual GDP growth rate, and will account for between 7 and 22 percent of the total GDP by 2025, a study released yesterday revealed.
Last year, Internet accounted for 4.4 percent of the GDP, up from 3.3 percent in 2010, which was already larger than the United States, France and Germany, McKinsey Global Institute said in the “China’s Digital Transformation” report yesterday.
In the best-case scenario, Internet related industries and services could bring an incremental value of 14 trillion yuan to China’s annual GDP for China if it is backed by aggressive government and industry efforts.
“New Internet applications in various industries will make a significant contribution to productivity growth in China,” said Jonathan Woetzel, director of McKinsey Global Institute.
“The Internet could lead to the introduction of entirely new products and services if the government and industry take the right steps to maximize its potential,” he added.
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