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The digital economy accounts for 22.2% of Chile’s GDP

InvestChile - November,30,2018

According to estimates by Accenture, this is equivalent to some US$55,000 million. Chile scored 33.1 points in the Digital Economic Value Index in which it led the region, thanks to its high adoption of digital technologies, accelerators and digital talent.

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The digital economy continues to gain importance in Chile. At present, it accounts for 22.2% of GDP, equivalent to some US$55,000 million. This is the conclusion of a study carried out by Accenture jointly with Oxford Economics.

According to the country managing director of Accenture Chile, Esteban Rodríguez, the digital economy has traditionally been measured with a focus on technological equipment, communications, software, e-commerce and broadband penetration, but is more than that.

The figure, explains Rodriguez, is obtained as the contribution that technology makes to all sectors of the economy through the use of digital talent and digital equipment and intermediate goods in production. “This model has given us a more complete idea of what constitutes a digital economy,” he says. 

Leader in the region

In order to compare countries, Accenture uses the Digital Economic Value Index in which Chile scores 33.1 points. This positions it in first place in the region, thanks to its high adoption of digital technologies, accelerators and digital talent, states the consultancy company. 

“Chile’s score of 33.1 means that it is making progress in this field (digital economy) since it is the regional leader,” says Rodríguez. The Index comprises three items and, in this report, Chile scored 8.6 points for digital accelerators, 13.3 points for digital talent and 8.6 points for digital technologies.

However, developed countries such as the United States double Chile’s scores, with the US obtaining 71.4 points. “This demonstrates the challenges that exist today at the local level to continue advancing in the digital transformation,” says Accenture.

The consultancy company’s study forecasts that the digital economy’s current 22.2% share of GDP could rise by three percentage points to 25.3% of GDP in 2021 or 26.3% that year if the drivers of digital value improve. “Our analysis shows that the increase in GDP could be optimized if digital investments are adapted to the specific needs of each economy,” explains Rodríguez.

At a sector level, the Accenture executive indicates that the greatest presence of the digital economy is found in start-ups in the financial sector, which have been able to respond positively to the digital transformation. “In most traditional companies, on the other hand, the lack of a digital strategy as well as uncertainty about the return on investment and the operational and organizational complexity of the change have restricted the digital transformation,” concludes Rodríguez.

For further information about the digital transformation in Chile, see this article.

Source: El Mercurio

Visa tech - ingles

Topics: Start-Up- Digital Economy- Innovation

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