The Industries that drive the Global Economy in 2015

Tue, Jul 28, 2015

Financial News

Since the great recession, the global economy has struggled to achieve sustained or consistent growth. When you also consider how the changing financial landscape has altered the perception of lenders and borrowers alike, we continue to live in challenging and volatile times.

Despite this, citizens have never been more engaged with political messaging, the economy and the individual engines that drive it. The recent UK election saw an estimated 30 million votes cast and the highest turnout since 1997, suggesting there is a greater desire to understand and influence the course of the future global economy.

Understanding the Industries that Drive the Global Economy

While citizens can become economic influencers simply by participating in local and national elections around the world, understanding the factors that impact on the financial landscape is far more challenging. It is first important to comprehend the key engines for growth, and more specifically the industries that drive economic expansion around the world. While new industries emerge in line with economic trends and innovation, there are a select few that remain consistently influential.

These include: –

The International Leisure and Travel Sector

According to the latest World Travel and Tourism Council (WTTC) forecast, the leisure industry will grow at a faster rate than the global economy in 2015. This sector will achieve annual growth of 3.7%, for example, which compares favourably against proposed global expansion of 2.9%. The total contribution of this industry to the economy will exceed $7.86 billion this year, indicated an increase of $280 billion from 2014 and accounting for 10% of global GDP. This wealth is shared throughout developed and emerging regions too, while the industry currently employs and estimated 277 million people around the world.

The Automotive Sector

Like the leisure and travel sector, the automotive trade is segregated into different regions, including the U.S., the UK and Europe. Despite this, the level of job creation and output from this sector dwarves the majority of others, and after a considerable decline during the great recession it has achieved renewed growth around the world. With resurgent brands such as Land Rover leading the charge, UK sales accelerated for 33 consecutive months between 2012 and 2014 while last year also saw the European car market grow by 6.5%. Now re-established as a key economic influencer, the automotive sector is continuing to take the world by storm.

The Creative Industries

While the creative industries have yet to assume a reputation as a key economic engine, it is certainly one of the fastest growing markets in the world. Recent figures revealed that the creative industries are now worth £76.9 billion to the UK economy alone, employing an estimated 1.7 million people and having experienced growth of 10% in the last 12 months. Now a pivotal part of the UK’s long-term economic plans, we can also expect this trend to influence other western regions such as the U.S. and Europe in the near future.

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