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KEY STAT | Digital economy contributes more than a third of China’s GDP

COVID-19 outbreak could give China’s digital economy another push this year as both consumers and businesses turn digital.

The digital economy in China grew rapidly in 2019 to hit a total value of RMB 35.8 trillion (USD 5.18 trillion), accounting for 36.2%, or a third, of the country’s total GDP, local news outlet Yicai reported citing Yang Xiaowei, the deputy director of the Cyberspace Administration of China.

It’s the single largest driver of China’s GDP growth last year, represented 67.7% of the country’s growth of GDP last year.

Since the COVID-19 outbreak, changes in consumption patterns have profoundly benefitted local internet companies as lockdowns have nudged more consumers to resort to the internet for shopping and entertainment. E-commerce behemoth Alibaba, for example, reported a revenue increase of 34% year-on-year in Q2 2020.

More on this please read: China’s digital economy now accounts for one-third its GDP

This article is part of KrASIA’s “Key Stat” series, where KrASIA picks and presents the most significant figures of the day’s technology and business world.