The current global economic situation hasn't given much to look forward to, as the World Bank called out falling long-term growth prospects, stating that global potential growth is likely to fall to its lowest levels in thirty years in the next decade, and many questioning if the economy will recover in 2024 and beyond. Currently, investment and productivity growth rates are declining and as birth rates continue to fall despite some of the countries with the highest fertility rates and life expectancy continued to increase year on year, the working population especially in advanced economies is aging, all of which goes to show that economic recovery in 2024 isn't likely. The CEO of JPMorgan Chase & Co. (NYSE:JPM), one of the largest banks in the world by assets, stated in October 2023 that the world may be facing its most dangerous times in decades. His statement came as the Israel-Palestine conflict came to a head and Israel declared war on Gaza after Hamas attacked the country in retaliation for Israeli acts compounded over decades, with the 1.5 year old Russia-Ukraine war also part of rising geopolitical tensions. JPMorgan Chase & Co.'s (NYSE:JPM) CEO said "The war in Ukraine compounded by last week's attacks on Israel may have far-reaching impacts on energy and food markets, global trade, and geopolitical relationships." This statement came even as JPMorgan Chase & Co. (NYSE:JPM) recorded $13 billion in profit in Q3 2023, a growth of 35% over the same quarter in the previous year. Significantly better performance has seen JPMorgan Chase & Co.'s (NYSE:JPM) share price increase by nearly 10% YTD.
A worker assembling metal oxide semiconductor field effect transistors (MOSFETs) on a conveyer belt.
Of course, recessions and economic downturns are expected all the time, and while the economic forecast for the next 5 years may not be very promising, the long-term outlook should see sustained, improved growth. The driving forces to manage this are the most technologically advanced countries heading into 2024, as the exponential improvements in tech are the best bet for future growth. There are many exciting developments and industries which are expected to shape our future, with perhaps the most exciting of them all being artificial intelligence (AI), one of the most important new technologies in the next 5 years. While AI has been incorporated in many applications through years and decades, the popularity of ChatGPT saw it dominate mainstream conversations, and resulted in its owner OpenAI obtaining an investment of $10 billion by Microsoft Corporation (NASDAQ:MSFT). Tech stock has had a fantastic year so far in 2023 and Microsoft Corporation (NASDAQ:MSFT) has been no exception, with its stock price improving by over 40% YTD. Microsoft Corporation (NASDAQ:MSFT) called out its focus on AI in its Q2 2023 earnings call, stating "And the next major wave of computing is being born as we turn the world's most advanced AI models into a new computing platform. In this environment, we remain convicted on three things. This is an important time for Microsoft to work with our customers, helping them realize more value from their tech spend and building long-term loyalty and share position while internally aligning our own cost structure with our revenue growth. This, in turn, sets us up to participate in the secular trend where digital spend as a percentage of GDP is only going to increase. And lastly, we're going to lead in the AI era, knowing that maximum enterprise value gets created during platform shifts. With that as a backdrop, the Microsoft Cloud exceeded $27 billion in quarterly revenue, up 22% and 29% in constant currency." Cloud computing is especially important right now as according to Gartner, technology trends in 2025 indicate that cloud computing will account for the implementation of around 95% of all digital workloads.
Many of the most technologically advanced countries heading into 2024 are making progress in AI, though unsurprisingly, most of the AI startups are based in the U.S. According to Bloomberg, the AI market is expected to be worth a mammoth $1.3 trillion by 2032, less than a decade away, maintaining an outrageous CAGR of 42%. Meanwhile, PwC, in its Global AI study stated that AI could contribute, both directly and indirectly, around $15.7 trillion to the global economy by 2030. Further, a 26% boost in the GDP of local economies could be driven by AI in 2030, which will be a welcome improvement as according to the IMF growth forecast 2023 list, growth is expected to decline to 2.8% in 2023 globally, down from 3.4% in 2022.
Meanwhile, 5G is another one of the most important technologies for both the present and the future, and something that the most tech advanced countries in the world have spent significant resources on. 5G deployment costs are considered to be around $3 to $8 billion for every country, while extending coverage requires an extra 20% to 35%, according to Ericsson. Of course, this depends on the infrastructure a country already has plus geographical size. Many of the most valuable telecom companies in the world have helped deploy 5G in many countries, though nations with struggling economies have been unable to take advantage of the myriad benefits that 5G affords due to the high costs of deployment and coverage.
While AT&T Inc. (NYSE:T) has seen its share price impacted so far in 2023, losing nearly a quarter of its total value, it is still one of the leading 5G companies in the world. It called out the importance of 5G and its implementation in its Q2 2023 earnings call, stating " As one of the largest investors in America's broadband infrastructure, we're enhancing our 5G and fiber network at a historic pace. We're focused on connecting the most people in the most places and with the best experience. Over the past three years, we've passed about 7 million new fiber locations, increasing our locations past by about 40%. Over the same time, we've expanded our nationwide 5G network to cover approximately 290 million people, and we now reach more than 175 million with mid-band 5G spectrum. While some of our peers spend time trying to convince you why their services are good enough for now, we're investing billions to provide Americans access to the best internet offering for decades to come." It is important to remember that 5G deployment across the world can be massively beneficial to the global GDP, and ABI Research stated that 5G is likely to contribute more than half a trillion dollars to the global GDP by 2030.
While these technologies are being deployed across the world, it is safe to say the U.S. is still the leader in this respect. Many technology based rankings mention European countries as the most tech-advanced countries in the world, but the achievements of the U.S. are unparalleled. Most of the top AI companies in the world and the biggest, most profitable tech companies in the world are all based in the U.S. The U.S. has the most advanced space program in the world and its policy of placing capitalism above equality has yielded significant breakthroughs. Of course, Europe is probably the most advanced region in the world, mainly due to its high standards of living, but it is still hard to compete with the U.S. in terms of tech advancements. At the same time, there have been concerns recently about the pace of technological advancements in the continent.
Methodology
To determine the most technologically advanced countries heading into 2024, we ranked them based on the World Digital Competitiveness Index, the Global Innovation Index and the number of patents ranked by each country. We then assigned 30% weightage to the first two rankings and 40% weightage to the latter.
Insider Monkey Technology Advancement Score: 68.5
Iceland is one of the most most technologically advanced countries with the lowest population in the world, and a metals company called DTE recently raised over 9 million euros in an attempt to revolutionize and digitize the metals industry in the country.
Insider Monkey Technology Advancement Score: 68.6
Estonia is a surprising leader in the tech industry, despite a population of just 1.3 million people. Estonia's government has been highly focused on tech for years now, starting from 1996, and successive governments have continued this trend.
Insider Monkey Technology Advancement Score: 69.2
The UAE is aiming to pivot its economy from oil, and is investing massively in tech. It is becoming a major hub for global companies to establish Middle Eastern headquarters, in a bid to becoming one of the most technologically advanced countries heading into 2024.
Insider Monkey Technology Advancement Score: 69.6
India is an emerging giant with huge potential, and is partnering with various countries for tech development. It is also attempting to provide an alternate to China for Western companies to establish tech hubs.
Insider Monkey Technology Advancement Score: 72.3
Recognizing the importance of tech advancements in agriculture, New Zealand is combining tech and farming to see improved results.
Insider Monkey Technology Advancement Score: 74.1
One of the leading companies in 3D graphene supermaterials, Lyten, Inc. recently established its European headquarters in Luxembourg.
Insider Monkey Technology Advancement Score: 74.5
Spain unsurprisingly has several startups in the tech industry, and a space startup called PLD Space recently launched a suborbital rocket for the first time in October 2023.
Insider Monkey Technology Advancement Score: 75.9
Italy's governmental agency is is setting aside around 30 million euros to improve digital literacy and upskill its workforce to make greater advancements in AI.
Insider Monkey Technology Advancement Score: 76.0
To continue to be counted among the most technologically advanced countries heading into 2024, Ireland needs to quickly upskill its workforce to deal with AI, especially in life sciences.
Insider Monkey Technology Advancement Score: 78.5
The telecommunications company Orange aims to deliver 5G internet to at least 40% of the country's population, with Brussels all set to receive 5G as well.
Insider Monkey Technology Advancement Score: 80.2
The Norwegian government is looking to invest over 1 billion kroner, or over $95 million, in the country's growing AI industry. The country's wealth fund has also sent a message to companies employing AI, encouraging usage but at the same time, focusing on responsible implementation.
Insider Monkey Technology Advancement Score: 80.3
According to Deloitte, Australia's space ecosystem has the relevant potential and capabilities needed to become world class, and the country is also working with India to collaborate on AI regulatory approaches and blockchain.
Insider Monkey Technology Advancement Score: 81.5
Hong Kong is one of the most tech advanced countries in Asia, as many top companies established tech hubs. Recently, Hong Kong's satellite manufacturing facility, one of the largest such facilities in the world, launched its first satellite.
Insider Monkey Technology Advancement Score: 83.1
While Austria's tech industry has faced challenges during the Covid-19 pandemic, it is on the way to recovering and the estimate for R&D expenditure in the country was in excess of 14 billion euros.
Insider Monkey Technology Advancement Score: 84.7
Israel has benefited massively from being the country that receives the most U.S. aid, and has used some of the funds for tech advancements, being the most technologically advanced country in the Middle East.
Insider Monkey Technology Advancement Score: 86.2
Japan is synonymous with "tech-advanced country", and isn't looking to slow down anytime soon, with TSMC also opening its first plant in Japan recently.
Insider Monkey Technology Advancement Score: 86.9
While Canada is considered a leader in tech advancements, its economy has been deeply impact in recent years and a freeze on federal funding for clean tech will impact the growth of the startup space in Canada.
Insider Monkey Technology Advancement Score: 87.0
France recently announced a partnership with the UK for the two countries to work on the development of renewable and nuclear energy, one of many areas where France is seeing major tech advancements.
Insider Monkey Technology Advancement Score: 87.5
Singapore's establishment as a tech hub has seen Volvo Cars recently launch its own tech hub in the country.
Insider Monkey Technology Advancement Score: 88.0
Nordic nations are some of the most technologically advanced countries globally and Finland is establishing itself as one of the leading countries in the world with respect to quantum computing advancements.
Insider Monkey Technology Advancement Score: 89.1
Denmark is proving to be fertile ground for tech startups and in its bid to become 100% powered by renewable energy, is fast becoming one of the most innovative countries in the world, with major startups including Monta, which aims to provide an all-in-one EV charging platform.
Insider Monkey Technology Advancement Score: 89.9
No longer the most advanced tech nation in Europe, Germany still has a lot to offer to the industry, and is employing tech advancements in various industries including packaging, while also partnering with the UK to bring about advancements in the hydrogen industry.
Insider Monkey Technology Advancement Score: 90.8
The UK has been under significant economic pressure but even then, has realized the importance of being among the leading tech countries in the world, with the government recently approving nearly £89 million for new tech developments in the electric vehicle industry.
Insider Monkey Technology Advancement Score: 91.0
Taiwan is considered by many to be one of the biggest semiconductor hubs in the world, with TSMC considered to be its biggest such company. Despite being under constant pressure and threats by China, Taiwan's tech industry has continued to prosper throughout.
Insider Monkey Technology Advancement Score: 91.2
China's competitiveness in the tech sector is likely to see it continue to improve its rankings among the most tech advanced countries in the world in 2024. Its EV industry is easily the biggest in the world, with China accounting for more around 80% of the global EV battery market.
Click to continue reading and see the 5 Most Technologically Advanced Countries Heading into 2024. Suggested articles:
Disclosure: None. 30 most technologically advanced countries heading into 2024 is originally published at Insider Monkey.
