- The growth of the global economy will not fare well in the coming years of this decade.
- So says a World Bank report on Monday, March 27. He describes these years as the “lost decade.”
- If companies do not grow, the advertising and marketing business is also seriously affected.
The relationship between the growth of the economy and the industry of the advertising and marketing is almost directly proportional.
When the economy is doing well, generally speaking (there are exceptions), the marketing and advertising industry grows because more companies invest to promote their brands, products and services.
One example is enough: a report published by the World Advertising Research Center before the pandemic it said that global ad spending would be around $560 billion in 2020, with a growth rate of 4.4 percent.
However, the arrival of the virus and the paralysis of the world led to a stagnation of the economy and, of course, forecasts for the advertising and marketing industry were not met.
Another example: one of the main reasons for the growth of the advertising and marketing industry is the rise of digital platforms. The advent of the Internet and social media has made it easier for companies to reach a wider audience. Thus, with more companies investing in digital advertising to promote their products and services, it made the sector take off.
This has led to an increase in the number of digital advertising agencies, which has created more jobs in the industry.
Another way of analyzing the issue is that the growth of the economy puts more companies to compete, which leads to growth in the advertising and marketing industry, since this dispute favors this sector.
In turn, the growth of the advertising and marketing industry also has an impact on other sectors, such as printing, for example.
The World Bank and a “lost decade”
But the news is not good for the economy. Average potential global economic growth is set to plummet to a three-decade low of 2.2 percent per year through 2030, says a report from world Bank.
The World Bank speaks the beginning of a “lost decade” for the world economy.
There is a chance to reverse the effect, but the World Bank says it will only be possible if policymakers take ambitious initiatives to boost labor supply, productivity and investment.
If this general slowdown in potential GDP growth is not reversed, it will have profound repercussions on the world’s ability to cope with climate change and reduce poverty, the study says.
Now read:
The ill-fated Silicon Valley Bank already has a buyer
HSBC rescues and buys part of SVB, the Silicon Valley bank that failed
Rolls-Royce CEO says it’s the brand’s ‘last chance’
