Low Growth Markets: Succeeding in low growth markets
It is now more than four years since the financial crisis struck. At the time, the conventional wisdom was that, while the crisis was serious, we would see a similar pattern to previous recessions: a two- to three-year period in which output was below its pre-crisis peak, followed by a return to growth. It hasn't happened. Andrew Curry and J Walker Smith analyse the barriers to growth and offer advice as to how companies should respond.
The scale of the financial sector's losses, the level of debt in richer economies and the austerity policies pursued by many governments have combined to create a slowdown that is longer and deeper than anticipated.
Now some economists are suggesting that the growth years before the crisis were a blip rather than a trend, and that the rich economies will have to learn how to live in a world of low growth. They may be wrong: pessimism is also a feature of recessions. But what if they are not? It would mean a fundamental shift in the way that companies do business in the richer world. In this article, we examine the arguments and outline the ways in which businesses need to change their thinking if they are to succeed in a low-growth world.