According to the statement made by the company, the EY Global Economic Outlook 2024 report, which draws attention to four strategies for companies to develop in the face of the opportunities and challenges they will face economically in 2024 and 2025, also provides guiding data for business leaders.
The report sees the global economy showing remarkable resilience despite the significant increase in interest rates, with gross domestic product (GDP) projected to grow moderately by 3.1 percent in 2024 and rise slightly to 3.2 percent in 2025.
In developed economies, the gross domestic product (GDP) growth rate is expected to be 1.5 percent in 2023, 1.6 percent in 2024 and 1.8 percent in 2025, while in emerging markets, it is expected to decrease from 4.2 percent in 2023 to 4.1 percent in 2024 and 2025.
The main reasons for growth in advanced economies, particularly in Europe and the UK, are the gradual liberalisation of monetary policy and the recovery of inflation-adjusted income growth.
A slight growth acceleration is projected in Latin America and the Middle East and North Africa (MENA) regions through 2025.
Global inflation is expected to jump to 6.2 percent in 2023, then cool down to 4.6 percent in 2024 and 3.5 percent in 2025.
In light of the report data, while the decline in inflation continues globally, central banks are expected to gradually ease monetary policy.
Companies need to adapt to the realities of the new normal, the report says
In line with all expectations and developments, the EY Global Economic Outlook 2024 report reveals that in order for companies to be successful, they must adapt to the realities of the new normal in several key areas such as economic activity, talent, inflation, central banks, fiscal policy and geopolitics.
The EY Global Economic Outlook 2024 report outlines four strategies that business leaders can adopt to thrive in the new normal. The report notes that these strategies will help businesses achieve growth, resilience, innovation, agility and profitability despite uncertainty.
Resilience requires regularly reviewing strategies, learning from past crises, and adapting portfolios to the changing economic and geopolitical landscape. It emphasizes a focus on making workforces, supply chains, and technology applications more resilient to new supply conditions and geopolitical influences.
On the innovation side, building the enterprise of the future requires significant investment in generative artificial intelligence (GenAI) and transformative technologies, staying one step ahead of technological developments, adapting to global trends in digitalization to increase efficiency and reduce costs, and reducing carbon emissions.
In the agility section, it is recommended to develop flexible planning processes that can quickly adapt to various economic scenarios and market conditions. It is important to apply dynamic pricing models on strategies and to be informed about geopolitical developments.
For profitability, it is necessary to focus on reducing costs and increasing process efficiency in order to finance future transformations, taking into account the impact of economic synchronization that may occur in different regions and sectors. The report draws attention to the need to optimize financial operations through strategic decision-making and divestments if necessary, and states that fiscal policy pressures should be balanced with the need for investment in social, defense, climate and digitalization areas.
EY Turkey Strategy and Corporate Finance Department Head Özge Gürsoy Büyükavşar, whose views were included in the statement, stated that business leaders need to prioritize certain strategies in order to adapt to the changing world.
Gürsoy said, “According to the EY Global Economic Outlook 2024 report, while looser monetary policy and inflation-adjusted income growth are anticipated in developed economies, global gross domestic product (GDP) growth is expected to be slightly above 3 percent in 2024 and 2025. We can say that factors such as easing supply constraints, reducing labor shortages, lowering energy prices and moderate demand growth can keep inflation under control. Easing financial conditions can support high-yield investment opportunities and transaction volumes, while limiting capital expenditures. In line with all these expectations and developments, business leaders need to adapt to new world realities in fundamental areas such as economic activity, talent, inflation, central banks, fiscal policy and geopolitics in order to be successful.”
Source: www.dunya.com
