FIVE prominent trends in the global marketplace are showing the way forward for corporates and entrepreneurs.
So says accounting firm PricewaterhouseCoopers (PwC), who interviewed 1 330 Chief Executive Officers from the largest companies in 68 countries to pinpoint developments that will ultimately dominate economic activity in coming years.
Presenting the findings at a business breakfast hosted by the Zululand Chamber of Commerce and Industry (ZCCI) in Richards Bay on Monday, PwC Director Omar Latiff said social, economic, political and technological changes that are slow to form at first, eventually influence a wide range of activities, processes and perceptions for both government and society for around seven to fifteen years.
‘The first one is demographic shifts. We will see a growth in the world’s ageing population, which will create huge challenges as the shrinking working age population carry the burden for the growing ageing group.’
The United Nation’s World Population Ageing report indicates that the percentage of people over 60 years of age has grown from 8% in 1950 to 10% in 2000,and will continue to increase to 21% by 2050.
‘The second trend is an economic power shift as the investment coming from the East remains robust,’ said Latiff.
‘China, India, Brazil, Russia, Indonesia, Mexico and Turkey are seeing an increase in consumer demand and there’s economic growth taking place.’
The third trend is global changes as urbanisation will increase by 72% by 2030.
Latiff said this would result in a growth city populations, creating mega-cities, otherwise known as city states.
‘The best thing for local industries to do is to gather and decide how to plan for this future urbanisation. Take advantage of your port, mineral resources and diverse population in this global economy.’
He said the world’s population is expected to escalate to 8.3 billion in the next 16 years.
Climate change and technology are the fourth and fifth indicators.
‘There will be a resource scarcity due to climate change and by 2030 we will need 50% more energy, 40% more water and 35% more food.
‘Technology is by far the biggest trend, propelling us in economic growth.
‘According to Moore’s law, the power of technology doubles every two years and artificial intelligence is expected to change our society in the near future,’ Latiff said.
