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The increase of digital challengers – Point of view on Slovakia

Digitization could grow to be the upcoming financial expansion motor for Slovakia.

For Slovakia, the possible economic and developmental positive aspects of digitization can access up to EUR 16.1 billion in more gross domestic merchandise by 2025. This corresponds to pretty much 5 moments what the nation designs to expend on schooling in 2018. Capturing these benefits would direct to greater global competitiveness and prosperity for the country’s 5 million people and make it possible for Slovakia to be a part of the most digitally highly developed economies in Europe.

Movie

This online video summarizes vital insights from our report on chances of accelerated digitization in Slovakia and CEE area – “The Rise of Digital Challengers: Perspective on Slovakia”. (Video clip is in Slovak language)

Over the earlier 30 several years, Slovakia has knowledgeable quick advancement (GDP per capita grew by 114 percent in between 1996 and 2017). On the other hand, lots of of the motorists of this expansion are commencing to shed their momentum. Appreciably undercapitalised in contrast to extra highly developed European economies, Slovakia is going through a shrinking and ever more much more costly workforce, with unemployment at fairly low ranges (8.1 p.c in 2017). With Slovakia’s functioning hrs already earlier mentioned the EU normal, there is a need to enhance Slovakia’s productivity, which at the moment lags guiding Western Europe. If Slovakia hopes to continue on its route to amplified prosperity, it requires to redefine its expansion approach.

Our examination displays that accelerating digitization and the convergence towards a tech-driven overall economy have a substantial potential to unlock the new development motor that Slovakia wants so urgently, ensuing in EUR 16.1 billion supplemental GDP. The measurement of the digital overall economy in Slovakia (at 5.9 per cent of GDP in 2016) is trailing the CEE ordinary of 6.5 %, with a crystal clear hole to Digital Frontrunner marketplaces these as Sweden (9. p.c). Even though the dimension of the Slovak digital financial system is not far off the EU Large 5 regular (6.9 percent), advancement is stalling – between 2012 and 2016, the digital financial system in Slovakia grew only by .7 % per calendar year, four periods slower than in the EU Significant 5, indicating it nevertheless hasn’t obtained sizeable momentum.

This report presents a standpoint on Slovakia as aspect of a broader analyze “The increase of Digital Challengers: How digitization can turn into the following advancement engine for Central and Japanese Europe” examining the prospects for the digital economic climate in CEE. We consider Slovakia, together with 9 other markets in the location (Bulgaria, Croatia, Czech Republic, Hungary, Latvia, Lithuania, Poland, Romania, and Slovenia), to be a “Digital Challenger” with opportunity for accelerated digital financial system progress. We look at Slovakia and the other Digital Challengers to a team of somewhat smaller, very digitized countries we refer to as “Digital Frontrunners”, namely Belgium, Denmark, Estonia, Finland, Eire, Luxembourg, the Netherlands, Norway and Sweden.

For Slovakia to benefit totally from the digital transformation online courses, we believe that now is the time to act. To realize the aspirational digitization situation, Slovakia will have to depend on all stakeholders – the govt, business enterprise leaders and folks. The community sector could integrate systems to enhance efficiency as well as increase the products and services delivered for both equally providers and citizens. Corporations will want to realize and embrace digitization chances, maximize their adoption of digital tools and reskill their workforces to match new talent needs. For people, investing in lifelong understanding for upskilling and reskilling will be the important to new labour marketplace prospects.

Technology is poised to fundamentally renovate the Slovak labour current market: Our assessment reveals that up to 53 percent of office activities in the country today could be automated by 2030 utilizing current technology. This creates the two a productivity maximize prospect and problems relevant to transitioning the labour market place to new task swimming pools. Speedy motion is required to address these. Effectively navigating the transformation in advance demands a clear digital agenda.