Sweden’s internet economy is growing rapidly and is expected to outstrip growth in more traditional industries.

A report conducted by Boston Consulting Group and commissioned by Google, said that the internet contributed an estimated 205 billion kronor ($40 billion), or 6.6 percent of GDP, to the Swedish economy in 2009.

Looking ahead, the sector is estimated to expand at almost 8 percent annually, to reach 7.8 percent of GDP by 2015.

The report titled “Sweden Online – How the Internet is transforming the Swedish Economy”, explained how the internet will continue to shape Sweden’s economy in the future.

“Sweden’s heritage of innovation, technical expertise and open and dynamic society will continue to provide excellent prospects for individuals, businesses and government to capture opportunities enabled by the internet," the report said.

Companies within the sector employ about 60,000 people. These include hundreds of enterprises, ranging from small software firms with a handful of employees, to Sweden’s ICT giant, Ericsson.

Internet consumption -- the amount that users spend on online shopping and accessing the web  -- accounts for some 53 percent of the 205 billion kronor a year figure.  Most of the rest comes from investment in the internet infrastructure, government ICT spending and exports.

Sweden gains a significant economic boost from the net export of ICT-related products, contributing 27 billion kronor, or 13 percent, to the internet economy, the report said.

Another report, compiled by British firm MapleCroft, found that Sweden is among the countries with the best access to communication technologies.

ICT remained the most attractive sector for foreign investors in Stockholm, according to year-end results from Stockholm Business Region.

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Commissioned article. This article was published in collaboration between Stockholm Business Region and The Swedish Wire.

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