Digitalization and Sustainable Economic Performance in Europe: Evidence from a Comparative Analysis of Macro-Level Indicators

Abstract

This paper examines the association between digitalization and sustainable economic performance across European countries. Sustainable economic performance is conceptualized as a multidimensional macro-level outcome that combines economic prosperity, labor market strength and macroeconomic stability, captured through indicators such as GDP per capita, employment, wages, inflation, public debt and external balance. The article addresses a gap in the literature, where digital transformation is frequently discussed either conceptually or through micro-level evidence, while comparative macro-level studies integrating digital, economic and labor market indicators remain limited. The aim is not to establish causal effects, but to explore whether higher levels of digitalization are associated with stronger and more balanced economic outcomes in Europe. The study adopts a comparative macro-level research design based on secondary data. A selected set of indicators is used to capture digitalization, economic performance, labor market conditions and macroeconomic stability across European countries. The research combines a focused literature review with exploratory empirical analysis based on descriptive statistics, correlation analysis and regression models. The results indicate that digitalization is positively associated with GDP per capita, employment levels and wage dynamics. However, the findings also show that digitalization does not automatically translate into fully sustainable outcomes, as cross-country differences persist in terms of inflation, public debt and external balance. This suggests that the association between digital transformation and economic outcomes is conditioned by broader structural and macroeconomic factors. The paper contributes to the literature by providing an integrated macro-level perspective on digitalization and sustainable economic performance in Europe, moving beyond fragmented and predominantly micro-level approaches. The findings suggest that digitalization policies should be complemented by measures supporting labor market inclusion and macroeconomic stability to generate more balanced and sustainable development outcomes.