A study published by the Inter-American Development Bank (IDB), details that the development of digitization, through advances in efficiency, the use of digital technologies and other “relatively minor” increases could boost growth of 5.7 points percentage in the next 10 years in Latin America and the Caribbean.
In this way, the study presented by the IDB indicates that this would mean approaching some $ 325 billion in additional revenue during the expected date. In addition, the infrastructure improvements will reduce inequality and help vulnerable populations currently affected by the pandemic.
The report also analyzes the potential impacts of autonomous, connected, electric and shared technology vehicles: Regional GDP would be 1.2% higher within 10 years if 30% of vehicles and bus fleets were electric .
According to IDB chief economist Eric Parrado, “infrastructure will be a critical component of the region to boost economies and reduce inequalities after the pandemic.” He maintains that “budgets will be restricted, so we must invest intelligently and sustainable”.
However, the document highlights the lack of investment in infrastructure in the continent, which invested nearly 2.8% of its GDP in technological infrastructure in the last decade, half that of emerging Asian countries.
The IDB highlights that technology will not only allow for a higher degree of efficiency and lower prices, but also change the very nature of service markets. However, it warns that these challenges will only be achieved if the necessary policies and regulations are adopted.
Source: El Sumario