Microeconomic Indicator in Forex
Internet and Internet Speed
What is the Internet?
With the help of the internet, today we are able to work, socialise, create and share information and generate new ideas. Yet, this scale of transformation has not given enough weight. The internet boosted the GDP growth of many mature economies by over 21%. Large corporations, individual consumers, budding entrepreneurs, and a lot of small businesses have procured a lot of benefits from this great revolution.
The global financial markets like Forex, Security exchanges, Cryptocurrencies, and International trade would be impossible without the internet. Thus, It is critical for countries to maintain optimal internet speed as it has become a need more than a want in the developed countries as well as many developing nations.
And yet, it is believed that this generation’s internet is in its early stages and will present us with a lot more opportunity than ever before. As a result, central governments, policymakers, and businesses have started to embrace the enormous opportunity the internet has created for them. Internet brings a lot of security, privacy, and convenience for the governments and businesses. From a business perspective, the internet helps in building a competitive environment and lets innovators and entrepreneurs thrive and nurture human capital. Together these components can maximise the continued impact of the internet on economic growth and prosperity.
Impact of the Internet on a country’s economy
The internet has a strong influence on the economic growth of the nation, and it is reflected in the essential measurable economic indicators. The recent researches have shown that the internet accounts for over than 4% of any developed country’s GDP. Statistics suggest if the internet were to be included under the consumption and expenditure sector, then its sole contribution to GDP would be much higher than the energy or agricultural sector. Going by the numbers, the internet’s share in the global GDP is much higher than the GDP of major economies like Spain or Canada; and is on the rise.
From the study of developed nations, it is found that the internet accounted for an average of 10% in the GDP growth over the past 15 years and is growing. For the large economies like China, India, and Brazil Internet accounted for 7% of the growth over the past 15 years and 11% over the last 5. However, there is a lot of variation among countries, including those that are underdeveloped, leaving huge room for inter-related growth.
Economists have always measured economic growth as a function of capital, labour, and technology. The economic parameters developed are fast to represent employment for labour and investment for capital. In order to determine the impact of broadband, it is taken a technology variant which is considered as cross-sectional, panel, and time-series. Cross-sectional gauges the impact of a group of countries.
The panel’s goals include registering the changes taking place in those groups of countries over time. A time-series model is used to examine the impact on a single country. The economic affect Information and Communication Technologies (ICT’s) have made studied thoroughly, and these prototypes are employed for analysing the effect of Internet-speed.
Why do traders care about Internet Speed and its impact on Currency?
Traders are noticing the fundamental shifts in how people are getting organised into flexible and multiple feature networks. The trader is looking at the ability to organise communities of internet participants to develop, market, and support products and services that can be transferred from primary to a more superior level and make the economy sound good.
The internet communities are beginning to perform tasks that enhance the well-being of the ordinary people, from updating missing person lists during natural disasters to giving a detailed description of rare diseases which proves to be a big positive sign for the population of the country and its currency.
Investment Managers believe that Policymakers and business leaders should collaborate to guarantee optimal conditions for the evolution of the Internet ecosystem within each nation and even internationally. Issues such as creating digital identities for verification and intellectual property can be addressed for every state with the advent of the internet. Matters concerned to the overall ecosystem include the availability of talent, and the business environment can be enhanced with the optimal use of the internet.
As the internet continues to expand in the area of cloud computing, big data, and other innovations, it will attract more customers and higher usage, even in the most developed countries.
Reliable sources of Information on Internet Speed for Major Currencies
There are many global speed test ranking agencies that calculate Internet Speed and keep them updating at regular intervals of time. Here are few Internet speeds of the top-ranked nations of the world:
EUR(Italy) - https://tradingeconomics.com/italy/internet-speed
EUR(Germany) - https://tradingeconomics.com/germany/internet-speed
EUR(France) - https://tradingeconomics.com/france/internet-speed
EUR(Spain) - https://tradingeconomics.com/spain/internet-speed
The Bottom Line
There are a lot of models developed to clearly study the impact of broadband on the economy with improved equations. We find some things in common, they are:
- Most of the studies were able to give a positive relation between fixed broadband and economic condition. However, the analyses do not show positive results for developing nations. It has been seen that the effect is only realised after the broadband power penetrates a certain threshold.
- In most of the countries fixed telephone, mobile, Internet use and broadband together has the most significant economic impact but in low-Income countries, just the mobile has a more significant impact, both in terms of subscriptions and mobile broadband.
As the fear of the global financial crisis challenges our government and business leaders to innovate like never before, we cannot lose sight of the considerable value the Internet economy has brought already to rich and emerging countries alike and its potential growth boost across the globe.