2012 marked a year of uncertainty from a global political and economic perspective led by China’s leadership changes, US and Japan Elections, US fiscal cliff, EU sovereign debt crisis and fear of China’s economic slowdown. Notwithstanding as well the Mayan’s end of the world prediction. In 2013 we will face a year with more normality than 2012. But how will the world look like?
Few things for sure, population will continue to grow led by the South Asia and the Sub Africa region while the mortality level continue to rise with growing aging population in the developed nations. Technological advancement will continue to drive our daily lives in 2013 with the advancement in mobile technology; more people will make internet part of their lives in areas such as social networking and online shopping. Income disparity will widen further unless we have a re-socialisation of current capitalism society (don’t see this happening just yet). Weather will get more extremes than ever and food prices will continue to rise with urbanisation and growing population. Water and arable land which have been basic necessities in the olden age of mankind will become more scare.
In terms of political situations, global governments are likely to work closer against the “new” common enemy of the internet. The threat of internet will tip preference towards social benefits against corporate capitalism. You will see more corporate backlash on top of the recent financials institutions bashing. Tensions among super power nations and regions will ease as they face more pressure internally and over the web over the issues which rose to prominence in the last decade.
Moving over to financial markets, on the back of the key developments highlighted above, key financial trends for the next few years would start to emerge in 2013. For details of my forecasts and predictions of key financial markets for 2013, please lookout for the second part of this 3 parts series.