According to research, if digital investment is maintained, GDP could be £74 billion higher by 2025, £127 billion higher by 2030, and £232 billion higher by 2040.
The research looked at the potential economic effect of a wave of digital transformation — powered technologies that enable new ways of working and interacting – conducted by Virgin Media Business and the Centre for Economics and Business Research (Cebr). It estimated a possible rise in UK GDP greater than Finland’s current total GDP (£209 billion).
Growth fueled by digital investments would aid the economy’s recovery from the Covid-19 pandemic and the unavoidable blow of exiting the European Union and its single market. The UK GDP in 2020 was £1.96 trillion, £216 billion less than in 2019, owing primarily to the Covid-19 epidemic.
Flexible working, digital service delivery, and richer data from AI and analytics, according to Cebr, are significant developments that will alter the world of work by 2040.
The feasibility of new work strategies, which may cut costs and enhance productivity, has been shown by the UK economy’s rapid digital transition across industries. Digital investment was ranked as one of the most viable for prospects looking for the best way to invest £5000 UK, and one of the most forward-thinking investments.
“History shows us that periods of economic hardship can help to catalyse technological progress and adoption, as businesses and other stakeholders seek to adapt to new realities.” said Cristian Niculescu-Marcu, Cebr’s head of economic analysis.
The study looked at the economic consequences of “a wave of digital transformation” brought on by new methods of working and interacting. “This could create an economic high road over the coming decades, helping the UK economy to grow while also having the flexibility to deal with future challenges,” said Niculescu-Marcu.
The study uncovered advantages in both the private and public sectors, concluding that public sector efficiency may be enhanced and costs reduced in the United Kingdom. According to the report, digital investments in health and social care may contribute £33 billion to GDP by 2040, while justice and central and local government might be worth £32 billion.
Meanwhile, £33 billion in digital investments may be made in the retail, professional services, and construction industries. According to the study, Covid-accelerated digital transformation might enhance employee productivity, with a 12 percent increase in productivity expected for those employees who can fully benefit from Covid-accelerated digital transformation.
“This is substantively responsible for the economic uplift of 4.8% across the retail, professional service and construction sectors by 2040, driven by continued growth in flexible working, enabling the delivery of digital services and providing richer data sets for AI and analytics,” according to the study report.
“Moves to accelerate digital adoption are driving extraordinary outcomes across private and public sector organisations, helping them to revolutionise how they work, deliver for customers, and provide vital services for our communities,” said Peter Kelly, managing director of Virgin Media Business.
According to a recent research from cloud communications platform vendor Twilio, the pandemic sped up their company’s digital transformation plans for 96 percent of UK corporate decision-makers, with 66 percent saying it did “a great deal.”