DIGITAL TRANSFORMATION OF EU MEMBER STATES' ECONOMIES TOWARDS ACHIEVING SUSTAINABLE DEVELOPMENT GOALS
Authors:   SESE “The Academy of Financial Management”, Stoliarov Vasyl , Sinkovskiy Mykola ,   SESE “The Academy of Financial Management”
Published: May 2024

Introduction. Digital transformation is the most important driver of the global evolution of society and economy. Digitalization can contribute to the economic growth by increasing productivity in the medium term. In addition, digital technologies have potential in many important areas, such as knowledge sharing, communication, management, information transfer, and staff coordination. Digital transformation stimulates economic and social innovations, which has a positive impact on achieving sustainable development goals (SDG). Problem Statement. At the theoretical level, scientific hypotheses have been put forward regarding the positive impact of digital transformation on economic sustainability and efficiency, as well as on sustainable development and economic growth, which is manifested in a positive correlation between these categories. However, such a correlation at the level of countries with different degrees of economic development is not universally recognized. In the developed EU countries, the impact of digital transformation is high, while in low-income countries this impact is rather insignificant. Moreover, there is a risk that digital transformation is a disruptive force that, if not managed well, could negatively affect the sustainability of economic growth. The purpose is to assess the impact of digital transformation on the economic performance and sustainable development goals of the EU countries. Methods. The study used the method of descriptive statistics and correlation analysis to identify and quantify the relationship between the indicators characterizing the achievement of sustainable development goals and digital transformation in the EU countries. Descriptive statistics and correlation analysis were used to analyze the asymmetry of the probability distribution of statistical indicators, as well as the closeness of the relationship between economic indicators characterizing digital transformation, sustainable development and economic growth in the EU countries. Results. The processes of digital transformation of the EU member states towards achieving sustainable development goals are investigated. Particular attention is paid to the study of the driving forces of digital transformation. It is found that new digital technologies have an increasingly significant impact on economic growth and sustainable development, especially in developed European countries. It is determined that the development of a digitalization strategy requires a coordinated work of businesses and regulatory authorities towards achieving sustainable development goals. Conclusions. Digital technologies have increased efficiency, connectivity and quality of life, but also have created new challenges, such as data security and its impact on employment. Although EU businesses are gradually adopting new digital technologies such as Big Data, Cloud Computing and Internet of Things, the level of adoption of advanced digital technologies remains low. The adoption of new AI-based technologies, in particular, is limited due to the complexity that small businesses may face in managing them. However, AI's potential for transformation is significant, with a wide range of applications in the socioeconomic sphere. It is expected to play an increasingly important role in the financial and banking system. Digital technologies combined with a change in thinking are creating new opportunities for planning, management, and sustainable development.