European economies are growing slowly compared to the United States and Asian countries. The problem is the lack of adequate innovation and digital skills in some areas of society.
However, the Polish Economic Forum, a public think tank under the Prime Minister’s Chancellor, says it will help catch up with the post-epidemic recovery plan.
The International Monetary Fund (IMF) predicts that EU GDP will grow by 5% in 2019-2025. In society as a whole, the losses caused by the epidemic will not be recovered after 2022.
Even worse, EU growth prospects are weaker than in the United States and other advanced economies. IMF analysts predict that the value of these blocks will increase by 8 and 11 percent, respectively.
Europe will lose its advantage over Asian countries. According to the ASEAN Economic Fund, the overall economic growth of its member countries is expected to reach 27 percent by 2025. For India, the planned increase is 31% and for China – 37%.
Europe has a problem east and south
One of the problems of the EU is not enough innovation. The average cost of research and development in the EU fluctuates about 2.2%. GDP. This is the same value achieved in China, but much lower than in the United States (2.8%), Japan (3.2%) or South Korea (4.8%).
We also notice a clear stratification in Europe itself – between the economies of the Nordic countries and southern and central and eastern Europe. The value of total expenditure in Germany is 3.2 percent. Poland, Italy and Spain account for about 2 percent of GDP. Under percent
According to PIE economists, the lack of sustainability in terms of digital capabilities can also be seen. The European Commission’s Digital Economy and Society Index (DESI) rankings show broadband Internet, the level of computer capabilities in the community and the spread of e-commerce and digital services.
In Scandinavian countries the size of this index fluctuates up to about 7 thousand, in Western Europe 5.5-6.5 thousand, and in southern and eastern countries, they usually do not exceed 5 thousand.
The observed difference has several causes. First: The percentage of people using the Internet in the Eastern and Southern economies is about 10 percent. Less than the north of the continent. The use of corporate data and ICD infrastructure is also very low.
All hope in the reconstruction fund
According to the PIE, the catch factor in vulnerable areas is the recovery of European economies after an epidemic.
In his case, funding is high in countries with low digital opportunities – with Bulgaria and Greece, the value of subsidies reaches 10%. GDP. In turn, it is 4-6 percent for other Central and Eastern European countries.
What is important in this context, however, is that, according to the original announcements, half of the funds allocated under the subsidies will support digitalization or combat global warming.
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