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    The Effect of Metaverse, a Virtual Space, on the Global Economy 

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    A virtual, immersive, and persistent 3D space, the Metaverse is poised to provide humans with superior virtual experiences. The idea has already secured unbeatable positions in the areas of gaming, social interaction and commerce and is poised to boom the global economy. The Metaverse is still evolving, and by 2035 it is expected that the additional GDP of the global economy will reach US$3.6 trillion annually.

    Let’s take a look at the potential of the Metaverse and how this concept will drive the global economy.

    What is the Metaverse?

    Metaverse is a term used to define a combination of mixed reality and virtual worlds accessible through a browser. The term was first coined by writer Neil Stevenson in his 1992, and he came into common use in 2003 to facilitate social interaction on the Internet. The platform currently has about 400 million monthly active his users, who are using different metaverse his platforms to explore ideas. Metaverse has 230 million, 165 million and 85 million users on the Roblox, Minecraft and Fortnite platforms respectively.

    The platform includes games, virtual items, virtual currencies, and a wide range of products, allowing individuals to use all of these items virtually. Apart from all this, the idea is poised to take a strong position in the global economy.

    The Metaverse is already in development and is expected to benefit the global economy, reaching a GDP of approximately $3.6 trillion by the end of 2035.

    What impact is the Metaverse having on the global economy?

    Metaverse has a strong foothold in gaming, education, wellness and commerce, and continues to attract companies entering the virtual space. The technology is being widely adopted, creating more economic opportunities, including new markets, advanced ways of working, and transforming training and development.

    A study conducted by economists in the analysis group of an international consulting firm shows that the expansion of the metaverse is beneficial for the European Union (EU) and the United Kingdom (UK). However, the measure would also benefit some other regions, including Canada, Sub-Saharan Africa, North Africa, the Middle East, Asia and Turkey, but these regions would be out of the loop to exploit the potential of the Metaverse. The EU and the UK are in a favorable position.

    Studies show that virtual space will boost the EU economy to up to $440 billion within 10 years. And all countries that started large-scale technology investments in 2022 are expected to increase their share of global GDP by 2.8% by 2031. Investments in the UAE participating in the competition are expected to reach around $8.8 billion to $16.7 billion by the end of 2035.

    The idea has the ability to transform or change current economic factors such as industry specialization, employment, and infrastructure.

    Conclusion

    Virtual spaces are continuously evolving to foster creativity, innovation and create economic opportunities around the world. Across education, gaming, wellness and commerce, the initiative is now poised to grow the global economy to US$3.6 trillion annually by the end of 2035.

    Nancy J. Allen
    Latest posts by Nancy J. Allen (see all)

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