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UK's digital strength could mean bright economic future

 

'The UK has ranked in the top five countries worldwide based on its ability to thrive in a post-Brexit, post-Trump era'.

 

This is according to the Indigo Index, which seeks to look beyond the headline figure of GDP to measure a country's entrepreneurial eco-system, and therefore its potential to adapt and develop.

It combines more than 30 datasets, grouped into five broad categories:

  • dealing with instability
  • creativity and innovation
  • economic diversity
  • digital economy
  • freedom

 

Using data from sources such as the World Bank, Unesco and Harvard University, 152 countries were rated in the index, with the UK coming fifth overall. Sweden tops the list of countries who are best equipped to thrive in a post-Brexit world. Behind Sweden were Switzerland, Finland, Denmark, the UK, the Netherlands, Norway, Germany, Ireland and Japan. The United States ranked 18th, with the four big emerging nations known as the Brics well down the list. Brazil was 45th, Russia 51st, China 65th and India 77th

 

Manufacturing has shrunk as a proportion of the UK economy in recent years and output is still lower than it was at the time the economy went into recession in 2008. But the Global Perspectives report said economic success in the future would depend less on whether countries were well endowed with natural resources and had invested in capital-intensive industries. Instead, it said the new era would be dominated by those countries that score heavily for human and creative capital.

 

The Indigo Index has been designed to look at the way in which factors such as education, technological knowhow, history and politics will shape economic performance.

 

Where does the UK perform best?

 

The UK performed best in the economic diversity category, with a third place finish, while it came fourth for its digital economy. This offset finishing 13th, 14th and 18th respectively for dealing with instability, digital economy and freedom.

 

Britain’s strength in the digital economy means it is one of the countries best placed to take advantage of the shift away from capital-intensive industry, according to an international survey of more than 150 countries.

 

A study looking at the nations that would thrive in coming decades was dominated by Scandinavian countries. However, the UK was ranked as the highest-placed member of the G8 leading industrial countries, in fifth position.

 

 

Source: Telegraph, 2016; City A.M., 2016

 

 

Thursday Dec 8, 2016