The UK economy could gain £38bn by improving digital technology by 2020

 
Lynsey Barber
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The UK is missing out on economic growth from digital technology (Source: Getty)

Better use of digital technology would boost the UK economy by £38bn and help increase global output by almost a trillion pounds.

Improving digital technology in the world’s top 10 economies would benefit the global economy by more than £900bn in increased productivity by 2020, according to a new analysis of the global digital economy.

The report identified the UK as the fifth best in the world, with only the Netherlands, US, Sweden and South Korea ahead. It based the ranking on indicators such as online retail purchases, broadband connectivity and infrastructure.

While the UK is one of the top digital economies in the world, Accenture’s Digital Density Index revealed weaknesses, which if addressed, could add £38bn to economic output by 2020.

Mobile connectivity is one of the biggest issues, with the UK ranked number 26 of European cities when it comes to high-speed broadband.

The index, which ranks 17 countries according to a 100 point scale, found a 10 point improvement on the scale over the next five years would lift the rate of GDP growth in advanced economies by 0.25 percentage points, and by 0.5 percentage points in emerging markets.

Digital Density scores of the world's leading 17 economies

"Making Markets" includes factors such as internet penetration and the quality of mobile connections, while "Running Enterprises" takes into account qualities such as digital skills and the use of cloud computing in business.

"Fostering Enablers" ranks aspects of the digital economy such as e-government services, while "Sourcing Inputs" is scored on factors such as remote working and use of the industrial internet.

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