OTTAWA -- Online sales continued to grow at double-digit rates in 2007, yet after six years of such expansion the sector still represents only a small part of Canada's economy, Statistics Canada reported yesterday.

Internet sales -- including not only retailers but all enterprises in the private and public sectors -- grew to an estimated $62.7 billion in 2007, up 26 per cent over the year before. The private sector constituted the largest part of that, with sales of $58.2 billion -- a 25-per-cent hike over 2006.

Nevertheless, Statistics Canada said "e-commerce still represents a relatively small fraction of total economic activity. In 2007, online sales of private-sector firms accounted for just under two per cent of total operating revenue."

Five years ago, it accounted for one per cent of operating revenue.

In the private sector, business-to-business sales made up 62 per cent of online sales, down from 68 per cent in 2006.

Statistics Canada's report also shows Canadian enterprises are more inclined to be consumers than creators of online commerce.

Forty-eight per cent of private-sector firms were reported to be purchasers of goods and services online versus only eight per cent that were sellers.

Seventy-seven per cent of private sector firms used wireless communications in 2007, up from 51 per cent seven years ago. But while 87 per cent of firms used the Internet in 2007, only 41 per cent reported having a website.

© The Vancouver Province 2008