DIGITALIZATION AMPFLIFICATION EFFECT ON INTERNATIONAL ECONOMIC STABILITY

Abstract

The definition of the digital economy is considered, as such, which can be characterized by activities related to the creation, dissemination, and use of digital technologies and related products and services. Today, digitalization is essentially implemented to encourage the development of ICT, promoting the informational openness of society, and providing the necessary opportunities for access to services and information offered by ICT. The study of domestic and foreign literature demonstrates the existence of an objective connection between the digital economy and the traditional economy. The advantages of the digital economy are fast ordering and delivery of the required product or service, lower prices for the end consumer due to the elimination of intermediaries, and a simpler process of selecting suppliers and customers. According to studies, digitalization provides incremental economic growth: countries that are at the most advanced stage of digitalization receive 20 percent more economic benefits than countries that are in the initial stage. Digitization has a proven impact on reducing unemployment, improving the quality of life, and increasing citizens' access to public services. During the pandemic, consumers have shifted dramatically to online channels, and accordingly, companies and industries have actively responded to these systemic changes. Statistics also confirm the rapid shift to customer engagement through digital channels. Accordingly, digital technologies have the potential to drive more inclusive and sustainable growth by driving innovation, increasing efficiency, and improving services. They are also an important tool to help countries confront and recover from the COVID-19 pandemic. Digital technologies are used to stabilize socio-economic processes in the conditions of modern global challenges - high inflation, energy, and food crisis, and negative consequences of Russian military aggression in Ukraine.