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The rise of digital challengers – Viewpoint on the Czech Republic

Digitization could become the subsequent financial expansion engine for the Czech Republic.

Over the past 20 years, the Czech Republic has experienced rapid improvement (GDP for each capita grew by 62 percent among 1996–2017), fueled by common industries, dynamic exports, investments from overseas, a increasing workforce blended with labour-value pros, as well as funding from the European Union. The expansion probable of a lot of of these drivers is almost exhausted, for illustration unemployment is at history very low levels (2.9 p.c in 2017). New sources of efficiency expansion are required if the Czech Republic hopes to go on on its route to improved prosperity. The report The Increase of Digital Challengers – Perspective on Czech Republic – provides accelerated digitization as the new engine of development.

Online video

This video summarizes key insights from our report on chances of accelerated digitization in the Czech Republic and CEE area – “The Increase of Digital Challengers: Point of view on the Czech Republic”.

Czech Republic as just one of the ten Digital Challenger markets primarily based in Central and Jap Europe has sturdy foundations on which to speed up its digitization. The digital economic system is presently effectively produced in the Czech Republic and in some sectors, this kind of as economic services and producing, the Czech Republic realized bigger digitization fees than the EU Big 5. Supplemental pros are massive talent pool, high-good quality digital infrastructure, as effectively as high adoption of digital skills amongst individuals. If this prospect is captured thoroughly the accelerated digitization can produce up to EUR 26 billion in additional gross domestic product (GDP) by 2025, or nearly a person proportion issue of GDP development p.a. This could convey greater competitiveness and prosperity and make Czech Republic one particular of the most sophisticated economies in Europe.

This report offers a standpoint on the Czech Republic as component of a broader review “The rise of Digital Challengers: How digitization can turn into the following advancement engine for Central and Jap Europe” analyzing the alternatives for the digital economic climate in CEE. We think about the Czech Republic, alongside nine other marketplaces in the location (Bulgaria, Croatia, Hungary, Latvia, Lithuania, Poland, Romania, Slovakia and Slovenia), to be a “Digital Challenger” with possible for accelerated digital financial state advancement. We examine the Czech Republic and the other Digital Challengers to a team of comparatively tiny, highly digitized nations we refer to as “Digital Frontrunners”, specifically Belgium, Denmark, Estonia, Finland, Eire, Luxembourg, the Netherlands, Norway and Sweden.

We believe that that in buy to reward absolutely from the digital transformation online courses, the time to act is now. The Czech Republic is booming economically however, background reveals that booms do not very last endlessly. Also the nations around the world of CEE, together with Czech Republic, can gain from cooperating intently. Alongside one another the CEE Digital Challengers stand for EUR 1.4 trillion in GDP – the 12th largest financial state in the globe. Promoting digital methods throughout the region can enable reduce the price tag of cross-border trade and allow Czech enterprises to tap into this potential. Also, a pan-CEE coalition could assure the digital interests of the region’s nations around the world are listened to at the European stage.