As we reach halfway through 2019, nobody is quite so sure how the economy will develop throughout the rest of the year and into next. However, from what we can see so far, there are five clear economic trends influencing business. No matter if you are self-employed, working for a small business, or working for a large corporate company, these will all have an impact on your business.
While reviewing your business strategy for the upcoming 2020, here are four economic trends that will likely affect you.
1. Cost of Living
Living costs are constantly on the increase. When this happens, it has a huge effect on other areas, such as market prices for dairy products and natural gas, which grow accordingly. Recently, interest rates for mortgages have seen an increase which has also hiked up the cost of living across the world. This has a domino effect: food, farming, energy supplies, and electronic industries follow suite and raise their prices.
2. Global trade conflicts
Last year saw trade conflicts take place between the United States and Europe, as well as between the US and China. As we currently stand halfway through 2019, it remains to be confirmed if these trade conflicts will be stable. The ongoing trade conflicts between US-China trade relations has an instant effect on business and is set to continue as the conflict to continue.
3. Digital technologies
Each year, digital technologies are slowly taking over and becoming key factors for shaping companies. The rise of innovative digital technologies makes companies more competitive and able to offer a far more impressive service for customers. Due to this, it’s worth being knowledgeable about key economic trends for 2019.
If your business hasn’t tapped into utilizing some of the key digital platforms and technologies, it could fall behind – and fast. Ensure a strong digital transformation strategy is place in time for 2020.
It’s worth bearing in mind that one of the latest developments within the technology industry is the emerging mobile communication technology- 5G. This is striving to deliver and provide an innovation push for businesses which run digitally. It is said to roll out from this year right into 2020, meaning it is now very important for businesses to get to grips with the opportunities that 5G can offer.
4. CO2 emission and energy demand
Global energy demand is continuing to be on the rise. As many efforts are being put in place to encourage the world to shift to renewable energy sources, it is still remaining a slow process. Due to this, more fossil fuels are expected to be burned throughout 2019 and into 2020 than ever.
It goes without saying that this continuation of burning fossil fuels leads to a rise in CO2 emissions and global warming remains on the rise. It has been predicted that the cost for CO2 emissions is going to rise dramatically, which then has a direct impact on energy-focused businesses, and indirectly impacts on other types of businesses too.
In a nutshell, 2019 offers a combination of known and unknown opportunities and challenges for business. As the economy changes regularly, it’s advised to take an interest and develop an understanding of the visible economic trends while preparing for the unexpected ones. After all, the more prep work you can put in beforehand, the more successful your business may be in such a competitive business world.
