Which areas should businesses focus on in 2014?
Our other predictions for 2014:
- Brazil is our favourite to win the FIFA World Cup in 2014. We think its world-class track record combines its home country advantage to give it the edge it takes to win the Cup.
- We project the GDP of all but one of the G7 economies to rise back above their 2007 levels. Italy the only exception.
- By the end of 2014, we expect that 22 economies around the world will still be smaller than in 2007. Of these, nine will be in the Eurozone.
- We anticipate 13 economies will grow faster than China in 2014, including Bhutan, Gambia and Libya. Meanwhile, Sub-Saharan Africa will grow faster than global GDP (at market exchange rates) for the 14th year in a row.
So, which areas should businesses focus on in 2014?
- Strategy/Growth: Don’t forget your core markets. Advanced economies are poised for significant growth in 2014 and can provide a boost to revenue growth.
- Financing: Adjust your funding plans to prepare for a world where the cost of debt increases on the back of tighter monetary conditions by the Federal Reserve.
- Risk monitoring and mitigation: In our view, the Eurozone crisis is in remission but we still assign a one- in-four probability of significant flare-ups occurring in 2014. We continue to recommend that our clients to stress test their business plans as part of their regular risk-management process. This exercise comes with the cost of implementation but with the added benefit of having a more secure, robust and resilient business model.