A new report from McKinsey Global Institute (MGI) shows that cross-border digital data flows, practically non-existent 15 years ago, now exert a larger impact on global GDP growth than trade in goods.
The report, entitled 'Digital Globalization: The New Era of Global Flows', shows that the world is more connected than ever, but the nature of its connections has changed in a fundamental way.
As shown in the Infographic below, the amount of cross-border bandwidth used has grown 45 times larger since 2005. It is projected to increase by an additional nine times over the next five years as flows of information, searches, communication, video, transactions, and intra-company traffic continue to surge.
In addition to transmitting valuable streams of information and ideas in their own right, data flows enable the movement of goods,…