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What to know about 2023's global economic trends and beyond

March 23, 2023 5 Mins Read

Any business owner in Hong Kong knows that it is important to stay up-to-date with the latest news and trends in their industry. But in today's increasingly global economy, it is also important to pay attention to what is happening around the world. After all, global economic trends can have a direct impact on your business, whether it is a supply chain disruption or a rise in the inflation rate. At present, the global economy for 2023 still relies heavily on the COVID-19 situation and war in Ukraine.

COVID-19: Omicron and the Post-Pandemic Future

With more than 11.8 billion vaccination shots administered across 184 countries thus far, most governments are starting to ease restrictions and open up international travel. While the global economy has begun to pick up from the impact of the COVID-19 pandemic, it still remains in a fragile state. The ever-present risk of new variants, such as the Omicron variant, could further disrupt and slow down recovering supply chains and industries. The fluctuations in COVID-19 cases could – once again – force governments to reimpose stringent measures to curb outbreaks. This can, in turn, significantly reduce growth in both advanced and developing economies.

Despite the ongoing challenges, the COVID-19 pandemic has also presented some unique opportunities. In particular, the pandemic has accelerated the trend towards digitalisation as noted by Algolia. The stay-at-home orders and social distancing guidelines have driven more consumers to shop online for items ranging from groceries to clothes to home goods at their convenience.

Many businesses have since pivoted to an online model and while this may have been a challenging transition, it has also allowed them to reach a wider audience than they would have otherwise. This shift is likely to have a long-lasting impact on the global economy, as consumers increasingly move away from the traditional brick-and-mortar experience and towards online platforms.

Even as we begin to return to some sense of normalcy, it is likely that these changes will stick around, providing businesses with new opportunities to adapt and thrive in the new post-pandemic landscape.

The economy moving forward

If you are running a business in Hong Kong, here’s a look at the main areas that will shape the global economy in the coming future.

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1. Tourism

For starters, the tourism industry is a major driver of economic activity, supporting businesses in a wide range of sectors. As more countries – including Hong Kong – gradually reopen their borders, businesses can expect to bounce back. In fact, UNWTO has reported that all regions enjoyed a significant rebound in January 2022. This can be good news for not just businesses that cater directly to visitors. Businesses of all types can reap the rewards of increased tourism activity. For example, a surge in tourist spending on dining out can lead to more business for local food suppliers. Or an increase in air travel can lead to more demand for fuel, benefiting oil companies and other energy providers.

In short, as the tourism industry starts to pick up again, you are likely to see a boost in sales and revenue in your business.

2. Inflation rate

It is important to know that inflation is currently on the rise across the world, with Pew Research Center reporting that inflation has hit the highest level in decades for some countries. For businesses shipping internationally, inflation can present some challenges. For instance, if the cost of shipping increases, customers may be less likely to make purchases online. Businesses may, in turn, have to raise prices in order to cover the increased costs.

When it comes to inflation, it will be essential for businesses in Hong Kong to carefully monitor the rate of any country where they are operating. By understanding how inflation will potentially affect the costs associated with your business, you can make more informed decisions about pricing your products and services. If you are shipping on a regular basis, be sure to create a DHL Express account to facilitate a smooth order delivery every time. Not only will you get access to special international shipping rates, spot available through your DHL Express account. Additionally, you may enjoy credit billing options and manage your payments online.

3. Supply chain

The outbreak of COVID-19 has had a profound impact on global supply chains. According to Toll Group, several factors such as logistic disruption and production delays will continue to affect supply chains, in fact it might take until the end of 2023 for the situation to improve.

While no supply chain is completely immune to disruption, there are a number of things you can do to strengthen it. A resilient supply chain is one that is able to adapt to unexpected disruptions and continue to function. This is essential in today's marketplace, where delays can come from many sources. With this in mind, your choice of shipping provider can empower your supply chain. Look for a company that has a robust network of facilities and transport options in and out of Hong Kong. This gives them the flexibility to reroute shipments quickly in the event of a disruption.

With DHL Express, you can have confidence that your business is well-positioned to take advantage of new opportunities and avoid potential pitfalls. Sign up for a DHL Express account today, and be better equipped to stay ahead of the curve when it comes to global economic trends.