Internet economy worth half a trillion this year

Internet economy worth half a trillion this year

The `Internet economy' grew 68 per cent between the first quarters of 1998 and 1999, and now accounts for 2.3 million jobs, according to a study conducted by the University of Texas Center for Research in Electronic Commerce which was commissioned by Cisco.

The study predicts the Net economy will grow to $US507 billion for all of 1999.

In June, the centre estimated that the Internet generated $301.4 billion in revenue last year.

E-commerce was particularly strong, with online sales soaring 127 per cent to $37.5 billion in the first quarter of this year. The number of jobs generated by online sales jumped 78 per cent, to more than 900,000, the study concluded.

What the study called `Internet infrastructure' also showed a healthy increase, growing 50 per cent to $40.1 billion from the beginning of this year. The application sector rose 61 per cent to $22.5 billion, and `intermediaries' increased 52 per cent to $16.7 billion.

The study defines the Internet economy as worldwide revenue generated by US-based companies.

By Sharon Machlis

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