Digital technology is not just a catalyst for change but a growth multiplier, transforming economies and industries. Accenture and Oxford Economics’ analysis of 60 countries reveals that digital density, a measure of the extent to which digital penetrates a country’s businesses and economy, has a strong correlation with economic growth. Digital density could boost annual growth rates of developed economies by 0.25 percent over the next five years, adding $1.36 trillion to their total economic output by 2020.

The study also highlights the importance of digital skills, digital technologies, and digital accelerators, such as open data and smart cities, in driving economic growth. It suggests that countries can increase their digital density, and therefore their growth potential, by investing in these areas.

However, the study warns that, while digital can be a powerful growth multiplier, it can also disrupt industries and labour markets. It suggests that governments and businesses need to manage this digital disruption carefully to ensure it delivers sustainable growth.

The study also identifies a digital achievement gap between countries. It suggests that countries that are slow to digitalise could see their growth rates decline, while those that embrace digital could see their growth rates increase. It concludes that closing this digital achievement gap could be a significant source of future economic growth.

Go to source article: