The Czech Republic can increase its GDP thanks to digital economy
By 2030, the Czech Republic could increase its GDP by EUR 15 billion (about CZK 360 billion) thanks to the digital economy: e-commerce and information technology. In all Central Europe, GDP could grow by EUR 200 billion. This is according to a study by consultancy firm McKinsey. From the same report, we know that Central Europe’s digital economy will grow at an annual rate of 13% between 2019 and 2021, catching up with the Big Five (France, Germany, Italy, Spain and the UK), which are growing at 7%. In particular, Czech e-commerce grew by 17% per year, maintaining the first position in sales per capita among Central and Eastern European countries.
Further growth will be driven by the increasing convenience of online shopping, availability of products and services, better prices, ease of payment and reliable delivery of goods. The development of online marketplaces and digital innovations improve the customer experience in terms of payment, fast delivery of goods and ease of return.
According to McKinsey, the share of e-commerce in total trade, which stands at 18% in the Czech Republic and 16% in the Central and Eastern European region, is still lower than that of the Big Five (21 per cent) or the world’s digital leaders, he added. The Central and Eastern European region has an opportunity to accelerate IT growth, represented by the largest capital reallocation in history, driven by the need to de-carbonize, innovate and create new businesses. Furthermore, the creation of new realities will be on technologies in which Central Europe has a strong position and can compete globally, such as green technology, new materials, production automation, connectivity and biotechnology. A big help can come from an European opening to exports.
Sources: https://czechdaily.cz/
Source of images: https://pixabay.com/ ; https://storyset.com/
