Digital Transformation Slows Down the Global Economy

By Shubhendra Anand , 07 November, 2024

Globally, the nations are facing downward momentum in their economic activities. The financial condition of advanced economies is declining rapidly in 2024. Surveys suggest that advanced economies are facing economic challenges due to various transformations. Hence, the countries are facing an increase in debts that affects their financial conditions.

According to surveys, developed economies fall prey to increasing debt rates and declining gross domestic product or GDP growth. It is said that oil consumption and GDP growth are interdependent. Experts claim that oil usage contributes significantly to a nation's economy. Hence, it is important to get a hold of the oil market. The economy of the world works differently at different times. It depends on the market strategy and whether it favors or against a nation's economy. In the era of digitalization, advanced technologies play an important role. The changing dynamics of the tech market affect the job sector immensely. Surveys show that it leads to job displacement and inequality. However, it can affect consumer spending in the market, too. Hence, digital disruption may occur, leading to numerous tech-related problems. With the growth of technology, a significant number of jobs are being done by technology. Additionally, using advanced technology reduces the extra workload, reducing the number of workers as specific applications can perform those works. Researchers say that digitalization also leads to declining small and medium-sized enterprises in the market.

Moreover, the inflation risk has always remained high with the introduction of digitalization. It helps to boost the economy by powering technology and its businesses. However, it creates economic issues, leading to disruptions from digitalization in 2024.

Economic surveys in 2024 show that digitalization helps cut costs and leads to nations' improvement. However, technology can make and break; therefore, the financial trajectory of a nation shakes tech influences.

                 Global GDP Growth by Percentage from 2021 to 2024