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UK Insights

Squeeze on growth

Andrew Curry


Economy 11.02.2013 / 00:00

Seedling illustrating growth

New report identifies long-term squeeze on growth

The world's richer economies, including the US and the UK, can expect a decade or more of low growth, according to a new report by Kantar company, The Futures Company.

The report, Succeeding in low-growth markets, outlines seven factors that are causing a squeeze on growth. They include structural factors such as demographic change, the long-term shift towards services, the upward shift in long-term energy prices, and economic factors including continuing levels of consumer debt, greater inequality, and increasing business scale. The rise in digital technology, often seen as a source of innovation, has also stripped value out of economies.

The headwinds don't look good for growth over the next decade - everything has slowed down, from productivity levels to the rate of innovation. That doesn't mean there aren't opportunities for businesses out there, but it does mean they have to look harder for them.

Although the report argues that low growth will be the dominant factor in the economies of the US and Europe, that does not mean there is no scope for innovation. What is clear, though, is that innovation strategies will have to change.

Read the full report on The Futures Company website.

Source : Kantar Futures

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