Connectivity linked to GDP, says report header image

Published: 22nd Jun 2016

A country's connectivity is linked to its economic performance, according to recent research. 

Earlier this month, telecoms organisation Huawei released its Global Connectivity Index (GCI), which revealed there is a direct correlation between a nation's communications services and its gross domestic product (GDP).

It found that for each point a country has on its index, there is a corresponding GDP increase of between 1.4 and 1.9 per cent. 

Huawei forecasts there will be some 100 billion connections generated globally by 2025, with 90 per cent of these predicted to come from intelligent sensors. It said this will be due to increased use of the internet from businesses. 

"By leveraging connectivity to streamline business processes, reduce costs and improve efficiency, enterprises will drive innovation and move the focus from a consumer driven internet to an industrial one," the organisation stated.

William Xu, Huawei chief strategy and marketing officer, added, "It is our hope that the GCI will not only indicate ICT investment and development in various countries and industries but, more importantly, serve as a reference for industry policymakers and enterprise decision-makers."

The organisation found Germany to be the most connected nation in the world, citing strong levels of ongoing investment in ICT infrastructure as the reason for this. Ranked in second was the US, while the UK came in third. Chile, Japan, South Korea, France, New Zealand, Canada and Mexico completed the top ten.

While the UK is ranked as having a good level of connectivity by Huawei, alternative research shows broadband speeds in the country are still someway behind those in other nations. 

According to Akamai's State of the Internet Report for the first quarter of this year, the country has the 15th fastest internet services in the world and the tenth fastest in Europe.

It put the UK's average download speed in the period at 9.9 Mbps, which is someway behind the world's fastest nation South Korea, where it was 23.6 Mbps.