8 Forces of Global Economic Change

Share on facebook
Share on linkedin
Share on twitter
Share on google
Share on email
The world is changing faster than ever before. With billions of people hyper-connected to each other in an unprecedented global network, it allows for an almost instantaneous and friction-less spread of new ideas and innovations.

Combine this connectedness with rapidly changing demographics, shifting values and attitudes, growing political uncertainty and it’s clear the next decade is setting up to be one of historic transformation.

Visual Capitalist have identified 8 forces they think are going to change the future of the globe.

  1. Tech Invasions
  2. Evolution of Money
  3. Wealth Landscape
  4. Eastern Promises
  5. Accelerating Tech Progress
  6. Green Revolution
  7. Shifting Human Geography
  8. Trade Paradox

1. THE TECH INVASION

For most of the history of business, the world’s leading companies have been industrially-focused.

Pioneers like Henry Ford and Thomas Edison innovated in the physical realm using atoms – they came up with novel ways to re-organize these atoms to create things like the assembly line and the incandescent lightbulb. Then, companies invested massive amounts of capital to build physical factories, pay thousands of workers, and build these things.

The majority of the great blue chip companies were built this way: IBM, U.S. Steel, General Electric, Walmart, and Ford are just some examples.

But today’s business reality is very different. We live in a world of bytes – and for the first time technology and commerce have collided in a way that makes data far more valuable than physical, tangible objects.

The best place to see this is in how the market values businesses.

2. THE EVOLUTION OF MONEY

Money is arguably one of humanity’s most important inventions. From beaver pelts to gold bars, the form and function of money has constantly fluctuated throughout history.

In the modern world, the definition of money is blurrier than ever. Central banks have opted to create trillions of dollars of currency out of thin air since the financial crisis – and on the flipside, you can actually use blockchain technology to create your own competing cryptocurrency in just a few clicks.

Regardless of what is money and what is not, people are borrowing record amounts of it.

The world has now amassed $247 trillion in debt, including $63 trillion borrowed by central governments:

3. THE WEALTH LANDSCAPE

Wealth is not stagnant – and so for those looking to make the most out of global opportunities, it’s imperative to get a sense of how the wealth landscape is changing.

The modern view is either extremely healthy or bubbly, depending on how you look at it: Amazon and Apple are worth over $1 trillion, Jeff Bezos has a $100+ billion fortune, and the current bull market is the longest in modern history at 10 years.

Will this growth continue, and where will it come from?

Here’s one look based on projections from the World Bank:

For the last 5 steps and more information follow this link. All the information in this article has been produce and published by Visual Capitalist. They are an external source and act independently from us. The information provided by Visual Capitalist belongs to them.

To have a discussion on how these forces may affect your financial plan or if you would like to assess your currently financial situation get in touch.

Share on facebook
Share on linkedin
Share on twitter
Share on google
Share on email

Leave a Reply

Your email address will not be published. Required fields are marked *

This site uses Akismet to reduce spam. Learn how your comment data is processed.

Similar Articles

Grow

The Clever Investor – Consolidated

In this three-part mini-series we are focusing on various ways you could invest your money. In the Good, the Bad, the Risky we aim to unpack different investments. We will look at the pros and cons of these investment options, as well as, what’s best to focus on.

Read More »