As the year draws to a close and investors and business owners begin planning for the future, understanding the wider external structures that will affect growth is imperative.
US economy predicted to soften
Current forecasts are predicting that US growth will slow from 3.1 per cent in 2018 to 2.4 per cent. This means that many businesses will choose to invest fewer resources into their fixed expenses.
Tepid forecasts for global growth
The Conference Board predicts that the global economy will experience cumulative growth of just 3.1 per cent during 2019. Growth is projected to slow in several key markets, including Japan and Europe, which means trading conditions between a variety of countries are set to struggle.
Tenuous relations between China and the US
Tenuous relations between China and the US, exacerbated by the Trump administration’s frequent statements, have caused significant periods of market volatility in recent months. The world is currently waiting to see whether the ‘trade war truce’ between the two countries is genuine or whether tariffs will come to represent US trade policy for the foreseeable future.
Although the internet of things (IoT) and artificial intelligence (AI) garner much of the attention, 5G technology is set to revolutionise the way we work in 2019. With the potential for processing speeds to be improved tenfold, technology and business initiatives such as delivery drones and remote surgeries could gain real traction. Many businesses are also set to benefit from virtual PA services from providers such as https://www.mushroombiz.co.uk/homepage/services/virtual-pa/.
Customer service revolutionised by bots
By 2020, the use of customer service chatbots will have increased 10 times since 2017. As bots can effectively tackle a range of customer queries and enquiries, many businesses will be likely to move away from mobile apps in favour of this versatile technology.
Social media companies are running into difficulties
Established social media companies such as Facebook are predicted to experience a difficult year in 2019, with brands that focus on securing growth via social media shifting their attention and spending towards new platforms.
E-commerce is growing rapidly
Projected to grow by 20 per cent throughout 2019, matching rates seen in 2018, the e-commerce sector is clearly outperforming many others. This strong and consistent growth rate means that increasing numbers of businesses are considering exploring the direct-to-customer options available to them.