BAKU, Azerbaijan, May 6. The EU countries need to invest in digital infrastructure in order to support comprehensive economic recovery, the European Investment Bank (EIB) said, Trend reports via the EIB Investment Survey.
According to the publication, 46 percent of EU companies started investing in digital transformation after COVID-19 pandemic emerged, and this has made digitalization an essential part of society.
As EIB explains, digitalization can convert business dynamics, work, education, governmental services, and many more.
"Moreover, based on the survey, digital enterprises were able to maintain their sales dynamics, while non-digital business might have seen a significant decline in trade. Many EU companies managed to take the advantage of the pandemic. For example, European firms started providing their services online," said the survey.
Meanwhile, some EU firms could be left behind in the recovery process due to the lack of technologies in particular countries, or regions.
“Small firms are less likely to adopt digital technologies, with negative implications for long-term competitiveness. These firms need to embrace transformation, exploiting the opportunities offered by the new technologies and investing in skills. Digital investment will help ensure survival and future competitiveness in a new, more digital environment,” the EIB said.
The Bank concluded that there is a need in targeted financial support and coherent regulation for non-digital enterprises.
“Professional development and retraining should be key policy objectives to address the looming problem of redistribution in the labor market, avoiding a scenario in which workers on a large scale fall into the trap of firms unable to adapt,” the survey said.
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