Businesses the world over have faced trying times consecutively for the past two years. What do we know about 2022 and will it be any different? In this article, we’ll be looking at the economic state of the world and financial predictions to help businesses set realistic growth targets for the year ahead.
Business Growth in 2022
Countries around the world are still in various stages of lockdowns. However, since the businesses that have survived the past 2 years are in good standing to continue to do so. That is to say, they have weathered the storm and learned to become more agile and adaptive to changing circumstances during a time when global wealth experienced a massive shift. No longer being in survival mode is an achievement in and of itself, setting you up to move towards growth.
To grow your business, you’ll need to have studied the market, your audience, and your internal processes. By being well researched in all these areas, you can develop the relevant strategies needed to propel your business forward. The world is only going to become more digitalized, so your needs to be updated and optimized to be a competitive force. Likewise, your customers have new sets of desires and demands, as do your employees.
Finding the best solutions in each of the three areas above is key. For maximum growth to occur, you’ve also got to save costs where you can. If that means remote working is the best solution, then put the steps in place to make this permanent and work on building your virtual company culture.
We often discuss the importance of having a technological backing and platform to run your business from seamlessly, and we’ll say it again: invest in a customer relationship management (CRM) system. It improves the workflow internally and puts the automation and steps in place to improve the customer journey. When it comes to growth, your business needs to be scalable and this is one of the best ways to ensure that it is.
Realistic Growth in 2022
The global economy is projected to grow by 4.4% in 2022. There are still high levels of uncertainty in the development of financial conditions, with changing policies and pandemic recoveries. Recoveries around the world are experiencing uneven growth, too, which has been linked to differences in vaccination rates.
Each country and sector is going to have its own financial situations to take into account, but we’ll begin with the general financial facts and figures you need to know about, especially as the world becomes more interconnected through globalization.
Rebounds are expected to continue to provide a boost to economies in the coming year. This comes as business environments have become competitive spaces driven by resilience in the name of sustainable long-term growth. Demand for goods, commodities, and exports have supported this. While the growth outlook for the year is relatively small, it is on the positive side of the scale as economies stables and growth plates. Covid-19 response statuses around the world are also having an impact on regional economic recoveries.
It is important to note that by and large, 2022 is still a year of recovery. That needs to be factored in when determining growth goals. When studying global economics, we look to the global economy, consumption, production, and inflation for the necessary insights to make predictions. In that vein, we see growth slowing, to 4.6% for the year ahead. China is a dominant region and key for driving economic growth since it counts for around 30% of global economic growth.
Inflation rates have been rising as a global trend, with rising costs of living affecting people's livelihoods. This is due to issues with supply chains, resource availability, and high production costs. This drive in pricing is expected to have long-lasting effects, making it key to factor into your business’s growth. Inflation will affect your business’s expenditure, as well as the disposable income your audience has.
We’ve mentioned that 2022 will be a year of recovery, albeit it at a slow one - i.e. don’t expect to see the return of 2019 figures just yet. It is not back to normal. To know where we are headed for sure, we need to monitor China’s growth carefully. A slowing down of growth here will impact the global economy, and growth in the country is already expected to slow for the year ahead. In fact, it could go on to slow down into 2023, as indicated by falling retail sales.
Strategies for Business Growth
Business growth is imperative in the coming years to ensure your spot within the market. Ready to grow your business for long-term success in 2022? Speak with us at Nexa. We can develop a strategy to help you achieve this that is tailored to your business and place within the global economy.