BERLIN, Jan. 10 (Xinhua) -- The turnover of Germany's digital sector in 2024 is expected to increase by 4.4 percent, to 224.3 billion euros (245.6 billion U.S. dollars), the digital association Bitkom said on Wednesday. This comes despite a "difficult economic environment," the association said.
"Germany's digital economy is on course for growth," Bitkom said. After increasing by 2 percent in 2023, the information and communication technology (ICT) sector is expected to grow three to four times faster than the economy as a whole.
Most companies in the sector are "crisis-proof," said Bitkom President Ralf Wintergerst. "Even under difficult economic conditions, characterized by geopolitical crises and budget cuts, sales and employment are increasing."
Growth in jobs could be significantly higher, although the shortage of skilled workers is "proving to be a stumbling block," Wintergerst said.
Due to a labor shortage in many professions, the German government initiated various legislative measures last year to make it easier for skilled workers to enter the country's labor market. These include migration deals with individual countries, and simpler residence permits.
On a global scale, Germany's digital association expects ICT sales to grow by 5.6 percent in 2024, to 4.91 trillion euros.
India is forecast to record the highest growth at 7.9 percent, followed by the United States and China, with increases of 6.3 percent and 5.7 percent respectively.
With a market share of 38 percent, the United States is set to expand its leadership, followed by China with a share of 11.4 percent. Meanwhile, Germany ranked 5th with 4 percent, according to Bitkom.
"In order for Germany to catch up in terms of digitalization, companies and administrations need to ramp up their investments more decisively," said Wintergerst. "The pace of digital policy must be more than doubled."
The German government is aware of the sector's importance. "We want to further strengthen Germany as a digital location," a spokesperson for the Ministry for Digital and Transport told Xinhua on Wednesday.
This has been done by "removing barriers for tech start-ups, advocating for globally standardized rules for artificial intelligence, and promoting future technologies in a targeted manner," the spokesperson added. (1 euro = 1.09 U.S. dollar) ■
