Top 10 Economy Trends to Watch Out for in 2011

Good news. There is light at the end of the tunnel in the second decade of the millennium as we put the recession behind us. We learnt valuable lessons from the dark days of the 2007/8 economic crisis.

So how will advances in technology – and how we use it, the emerging of under-developed economies and the next generation in the workplace affect global economy trends?

1.       BRIC competition

Good news. There is light at the end of the tunnel in the second decade of the millennium as we put the recession behind us. We learnt valuable lessons from the dark days of the 2007/8 economic crisis.

So how will advances in technology – and how we use it, the emerging of under-developed economies and the next generation in the workplace affect global economy trends?

1.       BRIC competition

Indonesia, Mexico, Turkey, Iran, South Korea, Egypt, South Africa, Thailand, Vietnam, Pakistan, Bangladesh, the Philippines and Argentina are all vying for the next top spots for emerging global middle classes.

Leading the way is Africa with an impressive 5 percent GDP growth from 2000- 2008 driven by rising prices for raw materials and improvement in government and debt.

2.       Post-millennium power brokers

The new kids on the block that will shape global economic, political and social development at the BRIC economies, social networks and the G20. Alongside individuals and organisation with vast assets, they will have massive influence over corporate governance and industries.

3.       Shortage of food, water and electricity.

Population growth is expected to hit 9 billion by 2050 from 6.9 billion today. To say an extra 2.1 billion people will strain the Earth’s natural (and basic) resources is a wild understatement.

By 2030 the water gap is expected to be 40 percent between demand and supply. The FAO expects food prices to rise, rise and rise. And energy demands past 2030 estimated at 1.1 trillion per year.

4.       Captivating markets

The new consumer wants to be involved with the makers of their favourite products and they want these products to be customized to their values and lifestyle.

Businesses are racing to connect with consumers, build a reputation, trust, loyalty and returns to secure their market position and hold onto their competitive edge.

Favoured are creative collaborations between firms and their consumers.

5.       Blurring of industry boundaries

Consumers want products that deliver more solutions – take for example the health and wellness industry that had expanded to include holistic services and more than just diet and fitness products.

Industries and organisations that partner up to deliver commercial and societal benefits simultaneously will be well positioned to take advantage of this growth.

6.       Technology

The world is looking to nanotechnology and biotechnology to solve all our health and ageing and resource challenges. We’re looking for alternative energy sources, increased food production, wonder materials and salvation from all diseases.

Closer than you think is the space race, already started by Virgin – China and Japan are next in line to take ordinary folks, to outer space.

7.       Communication

Consumers have stumbled upon an enormous voice that influences consumerism. Word of mouth and recommendations are more powerful than before and companies now have to listen to their consumers and tailor their products to remain favourable among consumers.

The little guy on the street now holds the power stick through social networks and buying groups – and companies are keeping up with a new critical dialoge, and will continue to do so for time to come.

8.       Social media

Think Twitter, Facebook, Blackberrys and iPhones. Consumers are spending more time on the net and on the go.

Keeping in touch with friends, family, colleagues – as well as buying and researching products. Consumers want information at their fingertips around the clock.

The downside: the digital deluge is leading to more emails, more often. Companies will look to ways to promote email etiquette and monitor productivity. More tools anyone?

9.       Cyberspace underthreat

Governments are evaluating the downsides of a world-wide web and free information. Where communities can turn on their leaders.

Achieving a balance between openness and privacy is key as the internet is in danger of being subjected to boundaries that block or monitor content.

10.   The generation gap

With four generations in the workplace, conflicts and differences in motivators at work become a key issue.

Companies and organisations will have to become more flexible – and focus on creating the next generation of leaders to stay one step ahead of the squabble.

So we can expect 2011 and beyond to bring untold economic as well as social change – as well as power moving east with the rise of the emerging economies. 

However, as society trends towards a global economy, there is a threat of the wealth gap between the rich and poor widening, leaving many in the wake of the next wave of massive economic growth.

Liz Zuliani

EconomyWatch.com

Read the full report on Global Trends.