June 22, 2024

The remote economy contributes up to $2.6 trillion to global GDP latinapress news


According to a study by The Economist Impact, the remote economy has the potential to increase global productivity by 10% and add $2.6 trillion annually to global GDP over the next decade. Higher work productivity, lower absenteeism rates, expanding a diverse workforce, boosting digital commerce and growth of services to meet demand are among the expected gains for remote work-related companies around the world, according to an analysis by the research arm of Britain’s The Economist and DocuSign. The Unleashing the Potential of the Remote Economy study, conducted in Australia, Brazil, Canada, France, Germany, Ireland, Japan, Mexico, the United Kingdom and the United States, shows that developing services and infrastructure around the digital ecosystem can improve the economic environment and people’s lives through new jobs and higher incomes. .

The Economist Impact estimates that long-distance agriculture has the potential to increase productivity (defined as “gross domestic product per worker”). The results suggest that as the long-distance economy expands, productivity will increase in all 10 countries (analysed). ), an average of 10 percent over the forecast period.” “With technology, people can work from anywhere at any time, which leads to very high productivity, and there is an important human aspect because with teleworking you can balance home life with work and that creates a much better work environment that contributes to productivity,” he said. Gustavo Brandt, Vice President of Latin America at DocuSign, in an interview.

The study found that the advancement of remote work will enhance diversity in talent. The ability to expand geographic areas of employment will allow more women and older adults to join the workforce. “We estimate the change in the labor force participation rate (LFPR) for women and older persons resulting from remote work in the 10 countries surveyed over the period 2022-2030. We predict that in 2030 alone, approximately 25 million women will join the workforce,” According to the Economist Impact study. Globally, the female labor force participation rate will increase by 5% by 2030, but in countries such as Mexico and Brazil, the increase could be larger, at 8% and 6.6%, respectively. However, the benefits of the digital economy will not materialize until companies prioritize investment in technology and adopt a mindset that allows them to hire their workers remotely, says Gustavo Brandt. “First, to be able to do this kind of work, there has to be an investment in technology, but there has to be a radical shift to understand that this is a new normal that is not going to slow down. And to support that mindset shift, we need to understand that it’s not about extremists. It’s about finding hybrid models that combine the best of both worlds,” he says.

Contribution of the long-distance economy to GDP

Infrastructure and services related to the digital and remote economy will also drive global economic growth. In the countries that participated in the study, the combined contribution to global GDP by 2030 is estimated at US$2.6 trillion; Between 2022 and 2030, the cumulative contribution will be an additional $19.4 trillion. This economic growth will be coupled with the advent of e-commerce, a new range of cross-platform services – including new educational opportunities – and the potential to create new products and services to sell in new markets.

There is an urgent need to prioritize investment in technology and innovation. But then we need to work on information security and overcome remote interaction concerns; We also need to develop goals that adapt to hybrid business models. These are the three most important factors that we must pay attention to,” Gustavo Brandt emphasizes. “The shift to digitization ushered in a new economic era, and now we must face this new reality. There are many reasons to be happy. The long-distance economy has created a wealth of economic opportunities. Businesses are finding new ways to thrive and new forms of entertainment, connectivity and work-life balance are being offered to consumers,” according to the Economist Impact report.