4 Things You Need to Know About Today’s Global Economy

In an unprecedented hyper-connected global network, the world economy is changing at an increasingly faster rate. It’s important for investors and business owners to plan carefully and only act upon trends that are here to stay. With the right knowledge, you can take advantage of economic changes. In spite of its current volatility, there are four things the best investors know about the global economy that aren’t likely to change anytime soon:

1. Emerging Markets are the Biggest Opportunities for Investors

Going into 2019, investors aren’t particularly thrilled about the global economy as a whole. However, there are several sectors expected to be very lucrative, and these happen to be the same sectors that are disrupting the economy. Investors can expect lower returns everywhere except in emerging markets. So many disruptive forces are shaking today’s economy, from the expansion of AI technology to the dwindling of natural resources. Companies that are capitalizing on these forces today are the ones that will stick around and withstand the changing tides. 

2. Tech is Taking Over

Looking at the growth of tech companies versus non-tech companies over the past decade, it’s clear to see the tech invasion is hard to compete with. Companies like Amazon, Apple and Alphabet, which utilize cutting-edge technology to deliver new and exciting products, are outcompeting traditional blue chip tech companies like IBM. Seeing the way Amazon is outcompeting Walmart is a major clue to investors and business owners that it pays to capitalize on new tech. From education to healthcare and manufacturing, it’s clear that the tech invasion has a place in every industry. As the rate of technological change continues to grow exponentially, companies that don’t keep up are bound to get left behind.

3. Artificial Intelligence Will Be an Economic Driver for Years to Come

Artificial intelligence is estimated to add $13 trillion to the global economy by the year 2030, leading to a gross GDP growth of 26 percent. By automating labor, AI technology will slash manufacturing and customer service costs for companies in virtually every industry. While this is good for companies overall, there will be a hard hit in the beginning when companies let go of workers. Skilled workers who previously held jobs will be forced to seek out ways to earn an income. Companies that capitalize on this need are expected to fare well in the changing global economy. Amway is a great example of a company already capitalizing on this trend, as it sees global growth by offering individuals the opportunity to sell Amway products as independent business owners.

4. The Green Revolution

One thing all countries have in common is the growing environmental risks posed by rapid industrialization. Environmental protection will be an obligation of future companies, so companies that are becoming environmentally sustainable today — such as Siemens, the German industrial conglomerate, and Cisco Systems Inc, the American tech company — are less of an investment risk.

Seizing Opportunities in a Changing World Economy

We’re in a time of rapid change and unexpected turns. However, one thing is fairly certain: global trends tell us we can expect emerging markets to be the most lucrative ones. As tech companies take over, AI cuts costs in businesses across all industries and companies become increasingly conscious of the environment, investors have clear-cut clues about where they should put their money.