These trends can become catalysts for Australia’s growth in 2022

Highlights

• The year 2021 saw significant changes among corporations worldwide when companies ran their operations remotely.
• The pandemic has sparked some interesting developments for the Australian economy, which can be a starting point for improved productivity.
• A shift away from globalisation and towards digitisation are some of the promising trends that await 2022.

As market conditions continue to remain dynamic in the COVID-19 era, it seems essential for businesses to catch on to the ongoing trends and keep their modus operandi precise. In 2021, a major digital shift was observed among corporations across the globe when even smaller entities hopped onto the trend of digitalisation and ran their operations remotely. In a way, the year 2021 has been a teaching period, with companies recovering from the aftereffects of lockdowns slowly.

While the economy still needs recalibration to achieve the pre-pandemic level of production, there are many interesting developments that the pandemic has left behind. Here is a look at some of the upcoming trends that can turn out to be significant game-changers for the Australian economy in 2022.

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A shift away from globalisation

The pandemic-induced restrictions have required businesses to improvise constantly and move forward despite supply-chain disruptions. With international trade being halted or, at the very least, restricted, many companies had to source materials domestically.

Additionally, growing trade tensions continued to raise inflationary concerns, urging countries to develop a greater degree of self-reliance. The U.S.-China trade war served as enough proof of how tensions between two superpowers can affect business globally. Thus, a growing wave of self-dependence could be seen among big nations in the coming year.

A more pronounced digital wave

Digitisation is the most visible byproduct of the pandemic. The major sweep of digitisation turned out to be convenient for both customers and sellers during the pandemic. The year 2020 and 2021 saw companies augmenting their brick-and-mortar business setup by opening online services.

However, many small businesses in Australia are yet to make the digital shift. Not only would this move allow them to join the ongoing trend, but it is also expected to boost their sales and improve their reach in the market. The government can also help in this sphere by promoting a shift to digitisation at the ground level.

Adoption of environmentally conscious methods

The year 2021 was marked with global recognition of the climate change issue and countries pledging to come together for the cause. One such move in the right direction was decarbonisation, through which companies joined hands to reduce the carbon emissions in the environment. As the supply-side market for lithium-ion batteries strengthens, one can expect a radical change in the coming year in the form of mass adoption of electric vehicles.

The onus to carry forward this vision of a carbon-free economy now lies on both the Australian government and businesses. This can be made possible by switching to cleaner forms of energy generation. However, alternative sources of energy and production are relatively more expensive, making the shift harder for some companies.

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Improved technology skills

For smoother functioning of a digital economy, technology skills are a fundamental prerequisite. Technological literacy should be promoted, starting right from primary school up to the university level. While there would be some inherent inertia before a technological shift occurs, the process usually becomes much smoother once individuals become familiarised with the concept.

Australia needs a greater level of technologically friendly population that can quickly adapt to changing market trends. This requires an improvement in domestic skillset, which can help build self-dependence for Australia.

In a nutshell, the economy is improving slowly and stands on the brink of some interesting developments. The pandemic has been the cause of a paradigm shift in businesses’ operations, helping them to stay afloat despite the challenges. Thus, if the government puts some of these changes and trends at the forefront and companies remain flexible, 2022 can also turn out to be a fruitful year for the country.

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