Called The rise of Digital Challengers: How digitization can become the next growth engine for Central and Eastern Europe, the report highlights that countries in the region are not leveraging their potentials to the full extent.

They could use digital technologies by transforming the public and private sectors, develop digital skills, support innovations, and introduce smart services, McKinsey partner Milan Mirjanič told an event hosted by the Chamber of Commerce and Industry (GZS) on Thursday.

The report calls ten countries in the region digital challengers because they demonstrate "strong potential for growth in the digital economy".

Slovenia is mentioned as an example of best practice in the region for its educational system, with the report noting that Slovenian students outperformed their peers in countries it calls "digital frontrunners" despite lower spending on education.

It also highlights as positive developments the uptake of digital services by the judiciary and in public contracting, and strong implementation of digital tools by companies, including through mandatory e-invoicing for business-to-public-sector transactions.

The GZS said, however, that there are challenges despite strong foundations. For example, Slovenia must support the use of digital tools and services in the public and private sector, develop digital and soft skills in the educational system, and provide more support for corporate innovations.