Digitalization could increase Romania’s GDP by 16.48%

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The increase in the degree of digitalization of services and value chains in Europe in the next six years could lead to an advance of Romania’s GDP per capita by 16.48% and productivity by 16.7%, according to a report made for Vodafone by Deloitte.

The Digitization: An Opportunity for Europe report examines the five key indicators – connectivity, human capital, use of internet services, digital technology integration and digital public services – as measured by the European Commission’s Digital Economy and Society Index (DESI) and demonstrates that including small progress can have a significant impact, a statement from the mobile company quoted by Agerpres reveals.

According to the report based on data collected from all 27 EU countries and the UK in the period 2014-2019, a 10% increase in the overall DESI score for a member state is associated with a GDP per capita of 0.65% higher, assuming that other key factors remain constant, such as labor, investment in the economy, capital and government consumption.

In the case of Romania, for example, the increase of the score registered in 2019 by only 5 points, from 36.5 to 41.5, would generate an advance of the GDP per capita of 0.89% and an increase of the long-term productivity of 4.30%. However, if the budget allocation for digitalization from the EU recovery package, in particular the Recovery and Resilience Facility (RRF), would be concentrated in the areas that would allow Romania to reach a DESI score of 90 by 2027 (end of the EU budget cycle ), GDP could increase by 16.48%. The report notes that if each member state would reach the 90 points target, “GDP per capita in the EU would be 7.2% higher at the end of the period, with countries with a lower GDP per capita in 2019 being the biggest beneficiaries.”

“For a country like Romania, with one of the lowest levels of GDP per capita in Europe, the report shows that accelerated digitalization in key areas, including through the efficient use of EU funds allocated in the national recovery plan, not only helps manage the economic challenges and the whole society we face today, but also to generate significant economic progress, with a 16.48% increase in GDP over the next 6 years,” said Murielle Lorilloux, CEO Vodafone Romania.

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