China Overtakes UK in Global Digitalisation Index – Euler Hermes
(26 February 2021 – Global) China is overtaking the United Kingdom (UK) on trade credit insurer Euler Hermes’s Enabling Digitalisation Index (EDI), rising from ninth place to fourth due to an improvement in its innovation capability.
The UK, in comparison, is ranked fifth and found itself in a cluster of developed economies, including Germany and the United States (US), that was able to limit the economic impact of coronavirus pandemic thanks to the strength of its digital offering and the proportion of its economy within the services sector.
The EDI measures the ability and agility of countries to help digital companies thrive and traditional businesses harness the digital dividend. It scores 115 countries based on five components: regulation, knowledge, connectivity, infrastructure and size.
The US, Denmark and Germany remain the top three countries for offering opportunities for digitalisation, while economies in the Asia Pacific make up six of the top 15 digital enablers. In particular, Hong Kong (placed 7th) and South Korea (placed 12th) are rising quickly up the rankings, each moving four places higher.
“The UK’s digital infrastructure performed well throughout the crisis but standing still is not an option. With Asia moving fast up our rankings, the UK and many others across Europe will need to do all they can to support their digital economies as they look to attract and retain the finest talent and firms” said Euler Hermes Global Head of Economic Research Alexis Garatti.
“Commitments to training the workforce and investing in research and development capabilities are key, but so too is education and digital competencies. With Asia’s presence looming large, investment in the potential of the UK’s knowledge base will prove invaluable in the Chancellor’s next Budget and beyond in coming years” he added.
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