Preparing for New Opportunities

Posted by admin on January 1, 2009

The global economy that emerges from the current downturn will continue to be defined above all by globalisation – the progressive economic and financial integration of national economies, facilitated by dramatic improvements in the speed and ease of moving capital, goods and information around the world. This will create huge opportunities for the businesses, although it will also bring new competitive pressures.

There are a number of trends which will shape our post-recession economy in the EU and globally.

Rising incomes will be a feature of the global economy.The EU and US will continue to the growth of middle-classes in highly-populated emerging economies and will also create new opportunities for the businesses.These consumers will be purchasing higher quality goods and services, including those that are produced to high environmental standards.

Low carbon and greater resource efficiency

Managing global resource pressures, moving to low carbon economies and ensuring that the global economy is resource efficient and resilient to the effects of climate change will require a big structural transformation in how we generate and use energy. Governments have a key role in setting the policy framework and creating some of the incentives that will drive this transformation. In doing so, we are addressing not just an environmental imperative but a huge business opportunity as demand expands for low carbon goods and services and for greater energy and resource efficiency.

New technologies

New technologies will drive both consumer and business demand. They will also transform existing products, and are likely to force businesses right across the supply chain to develop new business models and adopt new, innovative ways of delivering services. The life sciences, for example, will be transformed by advances in genetics. Developing communications technologies that allow the transfer, processing and exploitation of huge amounts of data have the potential radically to change business and leisure activities and the way we provide public services.

Demographics

Demographic patterns will change markets in both the developed and the developing world. An ageing population in the developed world means that the ratio of older people to the working age population is expected to increase by 40%-60% in the advanced economies. This will reinforce the shifts towards spending in areas such as healthcare and leisure goods. In the developing world, the number of people under 25 will grow steadily, creating a big market for education.

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