Global Eonomy and their Perspective

 Global Economy and their Perspective

We are currently experiencing a massive re-shaping of financial markets, due to Covid-19’s impacts around the world. That is now being represented by the G10 Global Dealing Index which is a poll of global FMCG corporates asked for their overall view of the performance of the global economy and their perspective regarding future investment plans.

The survey conducted by Credit Suisse surveyed 21,650 respondents from more than 100 countries. About 6,000 responses from “Financial Management” were considered in compiling the data to come up with the Global Dealing Index. It consists of the latest global economic data, including current conditions in national economies, forecasts, sentiment index scores, and investment plans about their businesses.

According to Credit Suisse (November 2019), the relative recovery of the global economy in the fourth quarter of 2019, which once seemed a distant dream, is proving to be quite different from what was previously expected. The recovery has been positively affected by structural innovation (since June) in the corporate and financial industries. This is reflected in the way in which the macroeconomic effects of COVID-19 have changed market forecasting and predicted economic growth.
The question this survey seeks to answer is as follows: what could have caused the re-shaping of financial markets? It addresses questions as follows:

What an unexpected rise in covid-19 related deaths?

How global instability could be a significant stress driver?
What will be the long-term effects of financial turmoil on economic growth and consumer sentiment?
Who will be affected by the increased impacts?
Where will this re-shaping affect financial markets?
How will financial markets perform in the coming future?
What is the strength of customer reaction to current market pressures?

    

These are common questions we usually ask ourselves while investing ourselves in our virtual offices in Asia. We see the possibility of a more large-scale re-shaping of financial markets during the forecast period of 2020 and into 2021, in a context where individuals and companies might not be as prepared to refocus their marketing strategies. Many people take advantage of the spontaneous changes that can happen in the realms of business. We see some customers experience a slowdown in consumer spending, which has an immediate impact on an immediate growth in the sales of their businesses. 
This situation happens because of the unplanned slowdown of two dimensions and two fundamental forces. The first variable (disruption in the market) is extremely disruptive because businesses have to reconfigure their operations and operations. They also have to focus their scarce resources of selling and marketing toward their marketing and sales.

Secondly, we see the customer (customer behavior) changing due to this change. We often see that some consumers change their needs after experiencing a crisis situation. In some cases, customers with an emerging skill set might experience a more significant change than others (changing their need state to higher investments). For example, in the case of long-term students, who have a more substantial budget and are willing to spend less, we see them feel less affected by the lack of work opportunities in places where their financial prospects are less, they spend more time at their leisure.

 
Many businesses experience a moment of “crisis of perception.” This will lead to a lowered level of awareness of the position of their businesses in the marketplace, and therefore, may also have an effect on their financial markets for the foreseeable future.

The question posed here is as follows: what additional, most accelerated change will be, shall we expect from our customers and business partners in the coming months, years, and possibly even the future? It can be said that few businesses have prepared themselves by predicting the businesses that will be most affected. What are the results and, more importantly, what should business leaders expect from customers, with their wallets and willingness to spend?

The return of the great advance in digital and AI has led to disruption in the marketplace as other businesses attempt to catch up. Increased innovation will continue to redefine the financial markets, where both deliveries of food, housing, and even health services will be handled by intelligent personal assistants.

The trend of technological change is likely to increase the efficiency and scale of businesses through AI, artificial intelligence, IoT, supply chain, AI algorithms and analytics, artificial intelligence, smart factories, machine learning, and many other technologies.
The effect of this technological change is in tandem with the “business of saving” of many businesses. The number of people participating in society is now quite low due to the increase in millennials, and they are a technologically savvy generation, which is ready to spend their money in the form of purchasing, investing, and generating income. Technology has allowed businesses to revamp their approach for handling their operations, and thus, business executives are finding ways to incorporate digital and AI skills into their business practices.

The future of the economy will depend on whether businesses continue to outsource their strategic planning and forecasting capabilities of ensuring the new