Internet spending forecast to surpass £21bn by 2012

The amount of money spent online by web users is forecast to grow dramatically in the coming years, reaching more than £21 billion by 2012, a new study shows.

Just as the internet is offering cheap communications services with the spread of VoIP solutions for both business and leisure usage, figures researched by Experian for PayPal reveal that 2011 is expected to be the biggest year yet for online shopping figures.

If the expansion does proceed as forecast, online spending will have grown by nearly 140 per cent by 2011 and could be one of the first indicators of economic recovery.

Carl Scheible, managing director of PayPal UK, said: "Online shops have already seen phenomenal growth and by the end of 2011, when the recession is expected to be over, we'll be spending at least one in every 14 pounds online."

He added that nearly nine million Britons already buy products on the internet at least once every seven days.

An increase in online shopping could also be affected by the government's universal connectivity policy, which plans to connect every UK home by 2012.