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* Can someone check my math? *

McKinsey did a study of 13 countries and found that the Internet contributes 3.4% to GDP. The report does not spell out how much this is in $ terms. Here's what I think is true, if you run the numbers:

Explanation:

Global: I added up the GDPs for the 13 countries that McKinsey surveyed ($44.468 trillion), and then I multiplied by the percentage figure (3.4%). You get 1.5 trillion

Now, it's not quite right to say that that's the Internet's contribution because that's the average contribution across all 3 countries. I didn't do that math all the way, but I am pretty sure that even if you looked at each country individually and totalled it up, you wouldn't shave more than a half trillion off of the total number.

You could say "trillions," but I can't yet validate that that's 100% correct - the rest of the world is about $17.5 trillion, and for the Internet to contribute another half trillion to GDP, it would need to account for 2.8% of that. That's entirely possible, but I don't have the data to prove it yet.

For US: US GDP ($14.58 trillion) * contribution to GDP in US (3.8%) = 0.55 trillion.

McKinsey did a study of 13 countries and found that the Internet contributes 3.4% to GDP. The report does not spell out how much this is in $ terms. Here's what I think is true, if you run the numbers:

**"The Internet contributes over one trillion dollars to global GDP -- including over half a trillion dollars in the U.S. alone."**Explanation:

Global: I added up the GDPs for the 13 countries that McKinsey surveyed ($44.468 trillion), and then I multiplied by the percentage figure (3.4%). You get 1.5 trillion

Now, it's not quite right to say that that's the Internet's contribution because that's the average contribution across all 3 countries. I didn't do that math all the way, but I am pretty sure that even if you looked at each country individually and totalled it up, you wouldn't shave more than a half trillion off of the total number.

You could say "trillions," but I can't yet validate that that's 100% correct - the rest of the world is about $17.5 trillion, and for the Internet to contribute another half trillion to GDP, it would need to account for 2.8% of that. That's entirely possible, but I don't have the data to prove it yet.

For US: US GDP ($14.58 trillion) * contribution to GDP in US (3.8%) = 0.55 trillion.

- Also, the White House has said:

"Some experts estimate that the Internet adds as much as $2 trillion to annual GDP, over $6,500 per person."

http://www.whitehouse.gov/administration/eop/nec/StrategyforAmericanInnovation

So there's that substantiation for the US number actually being higher, and being able to say "many trillions globally."Dec 3, 2011 - The piece of information you need is how they calculated that percentage figure: if it's weighted by the country's GDP, then you can straightforwardly multiply it by the overall GDP thanks to the distributive property. If it's just adding all the countries' percentages up and then dividing by 13, then you're in the scenario you describe above.Dec 3, 2011