What are the economic trends for 2019

The 6 megatrends of the future

The auditing and consulting company Ernst & Young (EY) identified six megatrends that will influence society, politics and the economy in the future as part of a study. Everything about IT trends on CIO.de

Trend 1: The digital future is here

New technologies and digitization are now affecting all areas of social and economic life. Information is available anytime, anywhere. The rapid digital development offers decisive advantages for companies: global markets can be captured more quickly, products can be tailored more efficiently to customer needs and business models and approaches are constantly being optimized.

Particular attention is paid to the globally increasing use of mobile devices in both private and professional environments. Companies have to adapt to new work and communication behavior by offering their employees new technologies. Especially if you have a "home office" work culture. Mobile Internet use does not stop at private life either: consumer behavior is changing rapidly. Half of e-commerce sales will take place via m-commerce in the future.

In addition to many advantages, increasing digitization also brings with it some challenges. Five of the ten largest data protection incidents occurred in 2013 and 2014. This development shows that companies are finding it difficult to cope with the flood of information and its processing. You collect and have large amounts of data, but the protection is not always fully developed.

There are still many points of attack, especially since almost every employee has their own end devices. The Center for Strategic and International Studies (CSIS) has found that digital crime has an annual cost of $ 575 billion. Companies should therefore protect themselves against possible hacker attacks by means of professional risk management and an infrastructure adapted to this.

Trend 2: Entrepreneurs drive economic growth

Companies that align their economic processes digitally have a clear competitive advantage. This includes the use of new and innovative ideas and concepts. It is precisely here that entrepreneurs have become important pillars of the economy, because they often approach problems in an unconventional way and thus generate new solutions and innovative products from which the economy benefits. This also creates new jobs.

It is therefore important to create the right environment for young entrepreneurs. They should be promoted in their economic project. Financial support and intangible incentives from investors in the public and private sectors are crucial.

Trend 3: The world economy is orienting itself eastwards

Asia - and primarily China - will move even more into the focus of economic activity. But the proximity to Europe and the low production costs will also create new trade hubs in Africa and the Middle East. Enormous economic growth is forecast for China (5.9 percent), India (6.7 percent), Africa (5.8 percent) and the Middle East (4.9 percent) by 2030. This leads to an eight percent increase in global trade. At the same time, the purchasing power of the global middle class is increasing - mainly due to the economic upturn in Asia.

The shift in educational funding is contributing to this development. Originally, the United States, Japan, the United Kingdom, and Germany were the world's leading sponsors of education and research. In the future, China will overtake the USA as the largest investor in research and development. China already has more doctorates and patent applications than the USA in relation to population density.

This shift in the focus of education and research is also noticeable in the availability of labor. In the industrialized countries it is becoming more and more difficult to find suitable workers in some areas. Vacancies in natural and engineering sciences, technical professions and mathematics are particularly difficult to fill. There is a geographical shift in the number of qualified specialists. By 2025 the southern countries will develop into the main source of technically well-trained talent and thus overtake the north of this rank.

At the same time, the proportion of women in the labor market is increasing. Companies can counter the challenge of the shortage of skilled workers by making up for it with an international and "gender-balanced" workforce.