At the conclusion of the Davos Summit, it was suggested to keep the global economy connected for the good of everyone. Though policy makers noted that things had improved from a few months ago, IMF Managing Director Kristalina Georgieva cautioned of the potential for a growth decline, inflation, and the continued war in Ukraine in 2023. She warned that households could experience more hardship due to a rise in unemployment and heightened cost of living.
European Central Bank president Christine Lagarde remarked that 2022 had been a strange year in terms of the supply chain, while also advocating for a "stay the course" attitude in regard to monetary policy. The U.S. Federal Reserve had adopted a more aggressive approach during in 2022 with multiple rate hikes, and Lagarde suggested that fiscal aid should be better directed and targeted in order to reduce the burden on monetary policy. We took a look at the impacts of the Economic Climate forecast for our clients, regions and industries. Read the insights below:
The Straits Times reports that some analysts believe there is a real risk of a technical recession – two consecutive quarters of negative growth – in the first half of 2023.
A downturn with a looming recession can bring significant impact to businesses in Singapore and Hong Kong. Companies may experience a decrease in demand for their products and services, which could lead to layoffs and reduced profits. Companies may have to tighten their budgets and cut back on hiring, investments, and other expenses. Additionally, businesses may encounter difficulties in getting access to credit and financing, as banks and other lenders become more cautious. This can result in businesses having difficulty in managing cash flow and meeting operational costs.
Equally, an upcoming recession can have serious implications for UK businesses. It could lead to reduced consumer spending, increased competition from multinational firms, higher unemployment, and increased pressure on businesses to cut costs. This could result in reduced profits, decreased investment, and potential closures for some businesses. Additionally, businesses may need to alter their strategies and operations to survive the recession, including restructuring, diversifying, and becoming more competitive and efficient.
Take Steps to Future-Proof Yourself
Industries such as corporate governance, technology, consumer, like any other, are subject to economic cycles and may be impacted by a recession. However, senior executives can take steps to future-proof themselves and their careers during such times. Here’s our advice to those in the Legal space albeit this advice could in some cases be used across the board:
Diversify your skill set: Senior lawyers can look to diversify their skill sets by learning about new areas of law or taking on new responsibilities in their current practice. This will help them become more valuable to their firm or clients and increase their marketability.
Stay current with technology: Technology is changing the legal industry, and senior lawyers need to stay current with advancements in areas such as artificial intelligence, e-discovery, and virtual court proceedings.
Network and build relationships: Building a strong network of professional contacts can help senior lawyers stay informed about new opportunities and potential challenges in the industry. It can also provide a support network during difficult times. This can be done through joining professional organisations and attending industry events.
Seek Out Mentorship Opportunities: Mentorship can help senior technology experts stay current within their field and develop their own leadership and management skills to the next level, setting them apart from others in similar roles.
Monitor Trends: In an industry which is fast moving, it’s important to keep on top of trends in the market and constantly develop your skills in line with the likes of Generative AI, Cybersecurity, Data-Storytelling, Cloud Computing and Machine Learning to name a few to help stay competitive.
Advocate for Yourself: Senior technology experts should be proactive in advocating for themselves and their career goals. This could include speaking up for yourself in meetings, networking, and leveraging their skills and experience to gain recognition and rewards.
Sales & Marketing:
Remote Work: As businesses face the challenges of a looming recession, they may be forced to reduce their workforce. Embrace remote working and consider taking on freelance and contract work to stay employed and in demand.
Stay Flexible: Remain open to different opportunities and career paths. Consider pivoting to a different industry or taking on a different role.
Look for Growth Opportunities: To grow within your current role or organisation, or to transition into a new one. Focus on areas of growth, such as Digital Marketing, Account Management, Client Relationship Management, Data Analytics, that can help you remain competitive and successful in the future.