Euler Hermes Enabling Digitalisation Index: digitised countries proved more resilient to the Covid-19 economic shock

  • The US, Germany and Denmark once again make the top 3 of our Enabling Digitalization Index
  • China registers the best progression and reaches the 4rd place
  • Belgium ranks in the global top 20
  • Highly digitised economies are more able to absorb the Covid-19 economic shock

The EDI (Enabling Digitalisation Index), indicator developed by Euler Hermes experts, measures the ability of countries to help digital companies to thrive and traditional businesses to harness the digital dividend. We evaluated 115 countries on five components: regulation, knowledge, connectivity, infrastructure and size.

Alexis Garatti, Global Head of Economic Research at Euler Hermes:

Once again, with a score of 88/100, the US leads by far this edition of the EDI. American companies benefit from a competitive market size, a solid educational system and research facilities, as well as a favourable business environment and regulation.

Among the top-ranked countries, China registered the best progression. The country reaches the 4rd place, a jump of +5 places compared to the last edition. An incredible progression partly due to improved regulations, the Chinese business climate, logistic infrastructures as well as the education system.

In Europe, there is no homogeneous trend. Denmark is the European champion of the EDI. Holding the second place, it has registered an increase of +1 place compared to the previous edition, and fantastic performances on each indicator. Germany remains on the podium. However, it loses one place compared to the previous ranking, due to connectivity that has progressed less quickly than in the other countries. France gains 2 places (rank 15). The Netherlands (-5 places), Sweden (-1 place) and Austria (-1 place) suffered a decline in the standings. However, the European Union positions 10 countries among the top 20 of the EDI 2020.

By disrupting value chains and global demand, the Covid-19 crisis has transformed the way economic actors interact. Digital has been essential in adapting the economy to the sanitary crisis. This is valid for all businesses, which have had to rethink their organisation and operation (teleworking, distance selling) as well as for the states themselves.

In this context, Euler Hermes experts have established a correlation between the digitisation of an economy and its resilience to the Covid-19 shock. Our experts compared the score obtained on the EDI and the economic performance recorded in 2020 for 78 countries. They conclude that for 1 additional point obtained in the EDI, an economy improves its absorption capacity of Covid-19 shock of 0.25 percentage point of GDP growth. This proves that the digital advancement of countries and their companies contributes to resist better to the Covid-19 crisis.

At Euler Hermes, innovation and digitalization are not just buzzwords. We combine data and technology to reinvent the world of trade finance. Customer satisfaction is at the heart of our concern. For years, we focused our efforts on making our solutions more intuitive and user-friendly. At Euler Hermes BeLux we offer, amongst other things, the following digital tools:
Our digital customer platform to manage your trade credit insurance policy and your credit limits.
An online risk-monitoring system to give you immediate visibility over creditworthiness of your customers and a better grip on risks and opportunities.
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