Future economy and its upcoming trends

Global GDP growth is expected to average 2.7% for the coming year, slightly above the median estimate of Bloomberg analysts and in line with the rate expected in 2024. The deposit market shapes the future of the financial economy. In our view, these changes will help diversify credit for savers, borrowers, strengthen the system, and create new avenues for investment.

Therefore, some important tendencies and possible advancements are regularly emphasized in the future economy:

Key Trends:

Technological advances: It is expected that the rapid development of biotechnology, automation, robots, and artificial intelligence will disrupt existing industries, create new employment opportunities, and transform others.

Globalization and Connectivity: Digital communication, global supply chains, and international trade all play a key role in the increasing interconnectedness of the global economy.

Sustainability and the Green Economy: A circular economy, renewable energy, and sustainable practices are becoming more popular as a result of growing concern about climate change and environmental degradation.

Geographical changes: Labor markets, healthcare, and welfare systems will be significantly affected by aging populations in some areas and rapid population growth in others.

Urbanization: As more people move to cities, utilities, housing, and infrastructure will need to be funded.

Attainable New development:

Greater automation and AI: Automation and AI are expected to replace many tasks currently performed by people, increasing productivity but potentially eliminating jobs in the process.

Growth of the digital economy: E-commerce, digital services, and the platform economy are likely to continue to expand, changing how companies operate and how consumers purchase products and services.

Emphasis on skills and education: It is expected that there will be a greater need for professionals with advanced skills in technology, data analysis, and critical thinking, which requires a greater emphasis on education and training.

Increased Priority for Sustainability: Governments and corporations are expected to give higher priority to environmental responsibility and sustainability, resulting in investments in green technologies, sustainable practices, and renewable energy.

New Economic Models: According to some experts, new economic models that place social and environmental well-being at the forefront of economic growth will soon emerge.

Uncertainty and Obstacles:

Job displacement and inequality: AI and automation could result in job losses in some industries, which could widen income disparities.

Ethical issues: Privacy, bias, and accountability are among the ethical issues that arise from the use of AI and other advanced technologies.

Geopolitical risks: Geographical conflicts, trade disputes, and political instability can affect economies around the world.

Climate change: The impacts of climate change, such as extreme weather and rising sea levels, could have a major impact on the economy.

All things considered, the future economy is expected to be defined by accelerating technological advancements, greater interconnectedness, and an increasing emphasis on sustainability. Despite the difficulties and unknowns, there are also opportunities for growth, innovation, and a better life.

Sources:

World bank data, IMF data, OECD iLibrary