Emerging Economies will always want Quality, Affordable solutions.
Developed Economies will increasingly ask for such solutions.
In the case of EU:
- Brexit.
- Banking crises.
- The largest influx of refugees since World War II.
- In April 2016, EU GDP finally became larger than it did at its peak before the financial crisis in 2008. So, it has taken eight years to recover. But the bloc also slipped back into deflation in April.
- Also most EU countries are showing a bit of growth but this growth is mainly coming from domestic consumption. The issue here is that domestic consumption helps but doesn’t really solve the big elephant in the room, ie. Exports! Without exports gaining a proportionate share, the economic growth will always be slow.
The UK-based study by the Resolution Foundation found that people under 35 earned £8,000 less in their twenties than the previous generation. Part of the launch of a new Intergenerational Commission, the report warns of the “growing divide between a more prosperous older generation and a struggling younger generation.”
Even though US growth has done well compared to every other developed economy, economy expanded by just 1.2 percent in the second quarter of 2016 while the first-quarter expansion was revised down to 0.8 percent from an initial 1.1 percent estimate. And this happening when the labor market is at more or less full employment.
Public and private sector organisations, businesses and startups cannot anymore keep wishing that things will be back to “normal”. This is the “new normal”. They have to really start offering quality, accessible, affordable and sustainable solutions as part of their product portfolio.