Metaverse could boost global GDP

In the first decade, the metaverse could contribute 2.8 per cent to global GDP. This is the assumption of experts from one of the largest international economic consulting firms.

Economists from Analysis Group, one of the largest international economic consulting firms, have developed a Report published. This states that the metaverse could contribute 2.8 per cent to global gross domestic product (GDP) in the tenth year after its introduction, if it develops similarly to mobile technology in terms of diffusion and impact. Assuming 2022 as the year of introduction, the metaverse could contribute up to three trillion dollars to global GDP in 2031 if further developed over ten years. Like mobile technology, the metaverse is expected to have far-reaching applications, potentially transforming a wide range of economic sectors including education, healthcare, manufacturing, vocational training, communications, entertainment and retail, according to a release.

A look back

The Analysis Group uses research on previous disruptive technologies to draw conclusions about the potential adoption process and economic impact of the metaverse. The metaverse, currently still in its formative stages, will comprise an extensive network of digital spaces realised through future technologies such as augmented reality (AR), virtual reality (VR) and mixed reality (MR).

It will focus on measuring the potential economic impact of metaverse if it were to develop like previous successful technologies in terms of user adoption and GDP impact. The researchers selected mobile technology as a suitable comparator technology because it shares similarities with the metaverse. This is because the metaverse also combines existing and emerging innovations, fundamentally changing the global, technological and economic landscape.

The team referred to academic literature on development cycles of innovative technologies and used publicly available data on the use and uptake of mobile technology over the course of several years. Direct, indirect and catalytic or stimulative effects were then assessed. These factors are central to GDP because they are responsible for job creation, business growth and overall economic development.

The study was written by Laurits Christensen with the support of a team of economists. Funding was provided by Meta.

Source: Personal / Image: Pexel - Harsch Shivam