Canadian Internet Economy Lagging Behind G20

19 March 2012 08:45am - Florence Fullalove

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Canadian Internet Economy Lagging Behind G20

A new study, compiled by the Boston Consulting Group has suggested that Canada’s Internet economy is expected to grow by 7.4% a year through to 2016. Although this is better than the country’s gross domestic product (GDP), Canada’s is still lagging behind many of its global peers. Canadian online consumption is expected to grow $27 billion in 2010 to about 51% by 2016.

The study found that the Internet accounted for about $49 billion or 3% of Canada’s GDP in 2010. However, that was lower than the G20 average of about 4.1% of GDP and put Canada 9th among the G20. By 2016, the online economy’s percentage of Canadian GDP is expected to reach 3.6%, falling behind a predicted G20’S average of 5.3%. This means that Canada will fall the 12th among G20 members, behind Mexico and Saudi Arabia.

Canadian online shopping isn’t as robust as it is elsewhere. Tawfik Hammoud, partner and managing director at BCG said, “There’s been more shift of advertising dollars from the offline world to the online world than in most countries.” Canadian online retail sales are lagging because of consumer habits and business models. There are gaps in the Canadian consumer behaviour that it is hopes will close. Hammoud said that there are signs that Canadian small and medium sized businesses have been more reluctant than their peers elsewhere in the world to develop an e-commerce strategy.” He added, “The Canadian consumer is heavily engaged, and basically is an active participant in the Internet economy and I think our companies need to follow suit.”

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Related Links:
• Boston Consulting Group
The Internet Economy in the G-20
• Economic Calendar
For scheduled economic events
• Latest News
For regular economic news

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