Top 2019 Market Trends
So we have zeroed in on the 2019 market themes but what about 2019 top market trends that shaped the year and could continue doing so into the next decade?
The 2019 top market trends likely to reshape business and society going forward is based on a recent research report by McKinsey Global Institute.
Globalization in transition was one of the top 2019 market trends
Globalization is being reshaped and supply chains are shifting notes the research report.
Globalization in transition means that certain sectors will be more impacted by globalization than others.
Manufactured goods played a leading role in international trade over the past few decades however, the growth of services globally is one of the 2019 top market trends to watch going forward
Certain services are already being globally traded at a rate three times faster than manufactured goods.
For example, the global compound annual growth rate for telecom and IT services reached 7.8%. Business services experienced annual growth of 5.3% and financial and insurance services have experienced a 3.2% global annual growth rate. IP charge services are also expanding at an impressive global annual rate of 5.2%
Transport services have been less impacted by globalization, experiencing an annual increase of just 1.7%.
The rise of Asia is one of the top 2019 market trends, according to the research report
Asia is already spearheading the growth of services traded globally.
Moreover, trade with and within Asia is rising, and this trend shows no signs of slowing down. Asia’s economic role in the global economy is growing rapidly, notes the research report. While the developed economies are experiencing low wage growth and lackluster consumption the reverse is true in Asia.
Asian household disposable incomes are rising faster than in developed economies, consumption is growing too. In China, there is a new dynamic at play, notes the research report.
China’s changing relationships is another one of the top 2019 market trends to watch
China’s economy is developed yet relatively closed. The country is moving away from an export-orientated dependent economy to one more reliant on domestic consumption.
But as China looks inward, other major trading partners depend on Chinese exports to fuel their growth. If China relies more on its homegrown auto sector and technology and less on outside suppliers, that is likely to cause a ripple effect on those economies reliant on Chinese exports.
Fourth Industrial revolution technologies driven by artificial intelligence are among the top 2019 market trends to keep on the radar
We are venturing into the unknown, regarding how new technology will change the future of work.
Mass adoption of digital technology will add economic value to businesses and economies.
Companies able to integrate new technologies that give them a competitive edge are likely to survive and thrive in this economic transition.
Another one of the top 2019 market trends to watch is the Automation impact on jobs
The declining labor share of income will increase the wealth divide going forward.
The rise of corporate superstars, one of the top 2019 market trends is another interesting one to keep an eye on.