Facebook boosts UKs economy to the tune of £2bn

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Despite increased competition recently Facebook still remains by far the most popular social networking site. Now it seems it is not just popular with users, as it is being claimed that Facebook boosts the UK economy to the tune of £2bn a year.

The company estimates the it benefits the UK by the huge amount, and as a The Guardian are reporting this includes £500 million from the app economy that has been created around the service. Facebook asked Deloitte to carry out a study, which found that the site supports 35,200 jobs in the UK, adding £2.2bn to the UK GDP each year.

The study looked at the direct economic impact of Facebook with the likes of paying tax, profits, and wages. This coincides with the bigger impact that businesses managed to reach out to customers by making sales, creating and monetize apps, and even increased demand for products such as smartphones and broadband services.

Sheryl Sandberg, Facebook’s chief operating officer said that the findings showed “that Facebook is about a lot more than sharing pictures or keeping up with friends”. Sandberg added that the site was great for small and medium sized companies, which made up “the backbone of the European economy”.

Facebook is estimating that the figures reflect that it has a £1.14bn annual impact on “business participation effects”, which is thought to be the value of the benefit for small businesses that use the Facebook pages to advertise their services.

Deloitte mentioned the massive app economy that has sprung up as games and applications connect with users of the site. This is believed to have generated around 7,500 in the UK alone. Are surprised at these figures?

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