Since the advent of 21st century, world economy has transformed up to several extent from technology driven economy to information-based technology driven economy. There are numerous reasons behind this change which include advancement in artificial intelligence, birth of digital currencies, high speed internet banking, inclusion of 5G internet, internet marketing, increase in online services and climate consciousness. These factors further contribute to the future of world economy by continuously improvement in current structure. These tangible factors are one part of the future prediction because there are several other unseen factors which are usually invisible to human beings. For instance, the sudden breakout of COVID-19 from China which grappled the whole world in just 3-4 months clearly depicts that there are several loopholes in world economy planning. These loopholes came to light when situation get out of control. The novel Corona virus has jammed the economy of the whole world without discriminating rich countries from the poor one because all are equally affected.
According to the recent report of United Nation department of economic and social affair, the global GDP could shrink by almost 1% in the year 2020. This decrease in global GDP is due to the severe lockdowns and closure of business activities across various countries. The trade between various countries has stopped. This situation if continues for a long time can further affect the global GDP. The only businesses which grew during the pandemic were online marketing, networking, online services and virtual schooling etc. All of this shows that the future of world economy further inclines towards information based smart economy. Otherwise, these types of pandemics could affect the global economy in the future. In the future, the role of artificial intelligence will increase largely because they involve less chances of error with less budgetary issues. Secondly, these artificial intelligence-based robots will eliminate the problems of social distancing, physical contact and living problems which exist between normal humans. In addition to this, these artificial intelligence-based robots will perform the functions and tasks more accurately as compared to the normal human beings because human beings have large error ratio vis-a-vas robot which works on the computer code.
The second most important aspect of future world economy is the arrival of digital currencies. Currently, the paper currencies which exist have numerous loopholes in it. Due to these loopholes the global economy suffers a lot both at national and international level. For instance, money launderers, tax evaders, cyber hackers exploit these loopholes. According to the report of United Nations office on Drug and Crime, the money launderers launder $800 billion – 2$ trillion money annually, and, this accounts for approximately 2 – 5% of global GDP. This problem will gradually eliminate in the future when digital currency like Libra and cryptocurrency will come into the battleground. For instance, the benefit of cryptocurrency is that one cannot delete transaction history after making transaction. This feature will help in finding money launderers very easily. Secondly, tax evaders will be unable to dodge digital currencies records. This will definitely help the poor countries in maintaining balance between tax to GDP ratio, and this will automatically contribute to the global economy. Thirdly, cyber attacks are the most important problem which the global economy is facing nowadays. For instance, the hackers from North Korea stole $2.2 billion from European banks in 2019. This is just one example and there are several other examples as well in which these cyber hackers exploit the weakness of current currency system. However, in future when digital currencies will take the hold on world economy the cyber attackers will face considerable resistance from global financial system because it will be very difficult to hack cryptocurrency and other digital currency.
High speed internet banking will be another positive attribute of future world economy. This will not only enable the banking sectors of different regions to intermingle but will also provide the users high speed internet banking and fast payment services. The example of PayPal is one such example. Besides this, the high-speed internet banking will further facilitate the imports and exports process between various countries. This will also allow the international banking community to trace the suspicious transactions to prevent the money laundering and financial terrorism. So, this development will contribute to the global GDP in near future.
The another most important development in world economy future is the addition of high-speed internet i.e. 5G internet. Some countries have already started the installation and testing of 5G technology. China is leading the world in 5G technology. The important parameters in this technology is the expensive infrastructure and installation cost. Secondly, several countries are also raising the privacy concerns regarding this technology but in future these issues will be resolved. However, there are numerous positive aspects of this technology which will shape the future. For instance, in future online schooling, e-business meetings, trans-continental medical operations and the provisions of online services will further increase. This will not only reduce the costs of working but will also boost the process by saving the precious time. In future, when a pandemic like this will happen then 5G technology will help in maintaining the global operations without any kind of interruptions.
In the future world economy, climate change will be an important factor because future economy will be more eco-friendly economy. The world is now facing a grave challenge of climate change and due to this reason countries will invest more in eco-friendly business environments. The recent conferences of climate change are emphasizing on green investments. Those countries who will ignore the instructions will face the grave consequences and even imposition of fines from the global institutions. Lastly, there is another important factor which shape the future of world economy and that will be nationalistic trend and economic self-sufficiency. In the wake of global pandemic when different countries faced medical equipment shortages and supply chain disruptions, they are now inclining toward self-sufficiency. This nationalistic mindset could give the blow to globalization and world economy. However, in the 21st century complete isolation for a country is impossible because no one can fulfill its needs completely by adopting isolation from the rest of the world. In the end, one can predict the future of world economy because no one can assure how the future looks like due to the several unseen X variables which are invisible to human eye.
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