Internet outage would cost $43 Billion per day, study finds

What would happen if the internet went down globally for even a single day? I, for one, would be worried!

According to a recent study by Atlas VPN, a day without the internet would cost the world economy a staggering $43 billion. 

The United States and China would bear the brunt of the cost, losing $21 billion each.

The study used the NetBlocks Cost of Shutdown Tool to estimate the economic impact of an internet outage. The tool takes into account a variety of factors, including the cost of lost productivity, the impact on e-commerce, and the disruption to critical infrastructure.

So, what would a global internet outage actually look like?

For starters, businesses would grind to a halt. Many companies rely on the internet for everything from communication to customer service to order fulfilment. Without the internet, they would be unable to operate.

Online shopping would also come to a standstill. E-commerce has become a significant part of the economy, and millions rely on it to purchase goods and services. Without the internet, they would have to find other ways to shop, such as going to brick-and-mortar stores.

In addition, critical infrastructure, such as transportation and energy grids, could also be disrupted. Many of these systems are now controlled by computers, and they would be unable to function without the internet.

Of course, the economic impact of a global internet outage would not be the only concern. People would also be inconvenienced and isolated. Without the internet, they might not be able communicate with friends and family, access news and information, or entertain themselves.

Overall, the study by Atlas VPN is a sobering reminder of how much we rely on the internet. It also highlights the importance of investing in cybersecurity and other measures to protect the internet from outages.

A day without the internet would impact countries differently

• United States: $11 billion
• China: $10 billion (estimated)
• United Kingdom: $3 billion
• Japan: $2.7 billion
• Germany: $1.5 billion
• Oceanic Islands: $50,000 (estimated)

The United States would be the hardest hit by a one-day internet outage, with losses of around $11 billion. This is due to the country’s high level of internet connectivity and reliance on online services for both business and personal activities.

China is also expected to suffer significant losses, although the exact amount is difficult to estimate due to the country’s internet censorship and economic restrictions. However, given China’s heavy reliance on manufacturing and exporting goods globally, an internet outage would likely cause significant disruptions to cross-border trade.

The United Kingdom, with its under-pressure e-commerce and financial services sectors, would also be impacted by an internet outage, with losses of approximately $3 billion. Online shopping drives many UK retail sales, while the country’s sizable banking industry relies on internet connectivity to function efficiently.

Japan, with its advanced telecommunications and internet technology, would also suffer losses of around $2.7 billion. From smart appliances to robotics, Japan’s innovative internet-enabled technologies and services would halt without access.

Germany, with its world-leading manufacturing industry, would also be impacted by an internet outage, with losses of potentially $1.5 billion. Industry 4.0, driving automation and efficiency in Germany’s industrial sectors, relies heavily on the internet.

Oceanic islands, conversely, would likely experience minimal losses from an internet outage due to their lower internet connectivity and reliance on online services.

About the NetBlocks Cost of Shutdown Tool

Here are some additional geeky details about the NetBlocks Cost of Shutdown Tool:

• The tool uses a variety of data sources to estimate the economic impact of an internet outage, including:
  • The World Bank’s World Development Indicators database
  • The International Telecommunication Union’s ICT Statistics database
  • Eurostat’s database of EU statistics
  • The US Census Bureau’s American Community Survey
• The tool takes into account a variety of factors, including:
  • The cost of lost productivity
  • The impact on e-commerce
  • The disruption to critical infrastructure
  • The effect on social media and other online services
• The tool can estimate the economic impact of an internet outage in any country or region.

The NetBlocks Cost of Shutdown Tool is used by businesses, governments, and other organizations to develop plans to mitigate the impact of outages and to advocate for investments in cybersecurity and other measures to protect the internet.

Quick Links

• Atlas VPN