World Economic Outlook
Most long-term future predictions of the World economic growth are made by a linear extrapolation of the past. But we at Benchmark Advisory Services believe that the World is at a point of discontinuity - some of the disruptive changes that we anticipate include the following:
- Countries that would be dominant economic powers 20 years hence would be very different from the current G6. This is relevant not only in terms of markets for your products and services but also in terms of currency fluctuations that could alter the very fundamental business propositions.
- The world has seen a near two decade period of declining interest rates from the early 1980’s. This is likely to be reversed and in spite of less favorable economic outlook, we are likely to see hardening interest rates in the decade ahead.
- Since the dismantling of the Classical Gold Standard in 1914, the US Dollar has emerged, slowly but surely, as the World’s reserve currency. This status of the US Dollar is unlikely to last for long and we anticipate the US Dollar to be replaced by a combination of precious metals and regional currency blocks.
- Globalization: The world has proceeded with Globalization in an almost uninterrupted fashion for the last 10-15 years. In the next 10-15 years, the process of Globalization that we will witness would be of a very different theme - it will not be the classical form of "build everything at its cheapest location and link it via a Global supply chain".
If you are interested in how some of the above discontinuous changes would affect your Business, contact us for the following:
- Understand the emerging economic scenario
- Impact analyze on your products and services
- Strategic envisioning of the future - in terms of geographies, products, operational realignments and Value propositions.
If you want to understand the fundamental Economic factors driving the above trends, you could read our publications at http://financial-musings.blogspot.com