Global economy
Global growth prospects deteriorate amid escalating risks
→
01
Global economy
Global growth prospects deteriorate amid escalating risks
Businesses worldwide navigated a challenging landscape in 2023, characterised by ongoing geopolitical tensions, the devastating impact of climate change and persistent inflationary pressures. These influences set the stage for business in 2024, highlighting the growing awareness that these multifaceted challenges are inextricably linked with their strategies and day-to-day operations.
India
China
World
USA
Australia
Canada
UK
6.1%
4.7%
1.4%
0.8%
0.7%
Source: World Bank, International Monetary Fund (IMF) and Organisation for Economic Co-operation and Development (OECD). 2023.
1.5%
1.1%
Climate change
Embracing the climate imperative and safeguarding biodiversity
Corporations must integrate thoughtful strategies for addressing climate change into their business frameworks. This transition poses greater challenges and complexities than many government and business leaders may realise. While we may have successfully tackled some of the easier aspects with significant effort, the more formidable challenges lie ahead. This encompasses establishing resilience to navigate the swift shift towards a low-carbon economy and addressing the intensifying physical disruptions caused by climate change.
02
North
America
Latin
America
Source: Economist Intelligence Unit (EIU). Climate Change Resilience Index. 2019.
Africa
Western
Europe
Eastern
Europe
Middle
East
Asia
Pacific
3.8%
1.7%
3%
4.7%
3.7%
2.6%
Economic impacts of climate change
Average real GDP loss by 2050
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$ 50
Source: GHD. Beyond AI. 2023.
2023
Generative AI market to grow 30x in ten years
Estimated global market for generative AI (USD billion)
03
Generative AI
Transforming industries and shaping the future
Generative AI is poised to revolutionize the global economy by speeding up creativity, making creative tools accessible for businesses, and improving productivity in content generation, data analysis, and customer support. Businesses leveraging its capabilities for personalized customer experiences, and potential impact on healthcare and research sectors are anticipated. However, ethical considerations and workforce shifts require collaborative efforts from policymakers and businesses to establish responsible frameworks.
2033
$ 1,500
Global complaints and losses over the last five years
04
Cybersecurity and new data privacy regulations
Safeguarding the digital landscape
This year, the relentless wave of cyber threats is likely to continue unabated, evolving in sophistication and scale. Ransomware attacks, data breaches and cyber espionage are daily headlines, highlighting the critical need for robust cybersecurity measures. The fallout from such incidents is not limited to financial losses; it extends to reputational damage, loss of customer trust and even national security risks.
44%
Source: GHD. Sustainability Monitor 2024. 2023.
Moderate gap
Estimated and projected urban population of the world
05
Sustainability and resilience
Staying ahead of regulatory shifts and increasing stakeholder expectations
Businesses that not only centre sustainability in their core strategy but integrate it across all operations and transparently monitor and report on their progress will be well-positioned for long-term success.
Significant gap
34%
Small gap
16%
No gap
6%
Mind the gap
Between ambition sustainability targets
and reality
06
Energy transition
A multifaceted approach is needed to achieve net-zero ambitions
The energy transition’s continued acceleration in 2024 and beyond depends on a comprehensive approach that addresses critical areas, such as fostering investments in renewable infrastructure, shaping conducive policy and regulation, driving engineered solutions and ensuring a just transition. Critical to this endeavour will be the integration of cutting-edge technologies, the implementation of robust policies, and the fostering of public-private partnerships to facilitate the shift toward a clean energy economy.
trillion USD to global GDP
$5.6
07
Water crisis
Concerted multistakeholder action is needed to address the global water crisis
Bridging the access gap is not just a moral imperative but vital for global stability. For businesses, embracing technology and collaboration is crucial in achieving positive water outcomes, respecting nature and nurturing communities in 2024 and beyond.
Estimated cost global economies between 2022 and 2030 by water risk
Estimated total output losses of manufacturing and distribution sector by 2050
2016-2020
2025
2030
2040
2050
5
4
3
2
1
Trillion USD
Gt CO2
40
30
20
10
5
Global carbon emissions
Clean energy investment
Net-zero pathway
Estimated total losses by droughts, floods, and storms between 2022 and 2050
trillion
$4
trillion
$1.3
08
Resilient communities
Nurturing equity and resilience
To build resilient communities, businesses should expand their focus beyond economic growth and consider the wellbeing of the environment and the overall quality of life for citizens. Without a thriving ecosystem that prioritizes the planet's wellbeing and provides inclusive opportunities for everyone, no community can establish a sustainable foundation for lasting success. However, given the current focus of policy makers across the globe on addressing housing, it is crucial to acknowledge this critical challenge and emphasize the need to address it.
Geopolitical conflicts
09
Supply chains
Navigating the dynamic landscape in uncertain times
In 2024, businesses will likely focus on building supply chain resilience and leveraging lessons learned from the disruptions caused by COVID-19 to shape their supply chain management strategies.
2018
2019
2020
2021
2022
Source: Federal Bureau of Investigation (FBI). Internet Crime Report. 2023.
351,937
$2.7 Billion
$3.5 Billion
467,361
791,790
$4.2 Billion
847,376
$6.9 Billion
800,944
$10.3 Billion
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7,000
5,000
3,000
1,000
500
1960 1980 2000 2020 2040 2050
World
More developed regions
Less developed regions
Populations (millions)
Year
Source: International Energy Agency (IEA). Net Zero by 2050. 2021.
Source: GHD. Future of Water: Building Resilience in the Face of Disruption. 2023.
Source: United Nations. World Urbanization Prospects. 2018.
Natural
disasters
Trade restrictions
Changes driven by pandemic
Environment-related regulations
GDP growth projections for 2024
%, year-on-year
2.7%
Complaints
Losses (USD)
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2024 GHD Global Outlook
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Climate change
→
Embracing the climate imperative and safeguarding biodiversity
Generative AI
→
Transforming industries and shaping the future
Cybersecurity and new data privacy regulations
→
Safeguarding the digital landscape
Sustainability and resilience
→
Staying ahead of regulatory shifts and increasing stakeholder expectations
Energy transition
→
A multifaceted approach is needed to achieve net-zero ambitions
Water crisis
→
Concerted multistakeholder action is needed to address the global water crisis
Resilient communities
→
Nurturing equity and resilience
Supply chains
→
Navigating the dynamic landscape in uncertain times
Cybersecurity and new data privacy regulations
→
Safeguarding the digital landscape
Climate change
→
Embracing the climate imperative and safeguarding biodiversity
Sustainability and resilience
→
Staying ahead of regulatory shifts and increasing stakeholder expectations
Energy transition
→
A multifaceted approach is needed to achieve net-zero ambitions
Water crisis
→
Concerted multistakeholder action is needed to address the global water crisis
Resilient communities
→
Nurturing equity and resilience
Supply chains
→
Navigating the dynamic landscape in uncertain times
Businesses that take concrete steps to overcome potential headwinds and are prepared to capitalise on new and emerging opportunities are well-positioned to outperform their peers in 2024 and beyond.
As we peer into the future, the undeniable force of Generative AI cannot be ignored; businesses must adapt, harness its potential, and ensure responsible use for a new era of innovation, efficiency, and progress.
In the ever-evolving digital world of 2024, two interconnected themes stand at the forefront: cybersecurity and the evolution of intellectual property (IP) and data privacy regulations. The convergence of these factors is shaping the way businesses and governments navigate the complex terrain of the digital age.
For businesses, sustainability and resilience represent a compelling imperative and opportunity. Identifying opportunities that arise from challenges and adopting a holistic approach to address competing priorities is critical to driving genuine leadership in sustainability and resilience. This means compliance with evolving regulations and gaining a competitive advantage.
Water, essential for life, is under unprecedented threat, with over half of natural disasters since the 1970s involving water, according to the IPCC. Our Aquanomics report warns of a potential $5.6 trillion GDP loss in seven diverse countries due to water risk between 2022 and 2050. Urgent action is needed for a sustainable and equitable water future to address issues like scarcity, inequity, and urbanisation. Nearly 700 million people could face water scarcity by 2030, perpetuating poverty and conflict.
Although global supply chains have been gradually recovering from the unprecedented disruptions caused by the COVID-19 pandemic in 2022 and 2023, businesses will likely face increased supply chain management challenges in 2024. Geopolitical tensions, a potential resurgence in protectionism and climate change are the key supply chain risks for the year ahead. These complex, interrelated issues demand immediate attention and strategic foresight as businesses navigate an ever-shifting landscape.
Businesses worldwide navigated a challenging landscape in 2023, characterised by ongoing geopolitical tensions, the devastating impact of climate change and persistent inflationary pressures. These influences set the stage for business in 2024, highlighting the growing awareness that these multifaceted challenges are inextricably linked with their strategies and day-to-day operations.
Businesses that take concrete steps to overcome potential headwinds and are prepared to capitalise on new and emerging opportunities are well-positioned to outperform their peers in 2024 and beyond.
Generative AI is poised to revolutionize the global economy by speeding up creativity, making creative tools accessible for businesses, and improving productivity in content generation, data analysis, and customer support. Businesses leveraging its capabilities for personalized customer experiences, and potential impact on healthcare and research sectors are anticipated. However, ethical considerations and workforce shifts require collaborative efforts from policymakers and businesses to establish responsible frameworks.
As we peer into the future, the undeniable force of Generative AI cannot be ignored; businesses must adapt, harness its potential, and ensure responsible use for a new era of innovation, efficiency, and progress.
This year, the relentless wave of cyber threats is likely to continue unabated, evolving in sophistication and scale. Ransomware attacks, data breaches and cyber espionage are daily headlines, highlighting the critical need for robust cybersecurity measures. The fallout from such incidents is not limited to financial losses; it extends to reputational damage, loss of customer trust and even national security risks.
In the ever-evolving digital world of 2024, two interconnected themes stand at the forefront: cybersecurity and the evolution of intellectual property (IP) and data privacy regulations. The convergence of these factors is shaping the way businesses and governments navigate the complex terrain of the digital age.
Businesses that not only centre sustainability in their core strategy but integrate it across all operations and transparently monitor and report on their progress will be well-positioned for long-term success.
For businesses, sustainability and resilience represent a compelling imperative and opportunity. Identifying opportunities that arise from challenges and adopting a holistic approach to address competing priorities is critical to driving genuine leadership in sustainability and resilience. This means compliance with evolving regulations and gaining a competitive advantage.
Bridging the access gap is not just a moral imperative but vital for global stability. For businesses, embracing technology and collaboration is crucial in achieving positive water outcomes, respecting nature and nurturing communities in 2024 and beyond.
Water, essential for life, is under unprecedented threat, with over half of natural disasters since the 1970s involving water, according to the IPCC. Our Aquanomics report warns of a potential $5.6 trillion GDP loss in seven diverse countries due to water risk between 2022 and 2050. Urgent action is needed for a sustainable and equitable water future to address issues like scarcity, inequity, and urbanisation. Nearly 700 million people could face water scarcity by 2030, perpetuating poverty and conflict.
Businesses worldwide navigated a challenging landscape in 2023, characterised by ongoing geopolitical tensions, the devastating impact of climate change and persistent inflationary pressures. These influences set the stage for business in 2024, highlighting the growing awareness that these multifaceted challenges are inextricably linked with their strategies and day-to-day operations.
As we peer into the future, the undeniable force of Generative AI cannot be ignored; businesses must adapt, harness its potential, and ensure responsible use for a new era of innovation, efficiency, and progress.
This year, the relentless wave of cyber threats is likely to continue unabated, evolving in sophistication and scale. Ransomware attacks, data breaches and cyber espionage are daily headlines, highlighting the critical need for robust cybersecurity measures. The fallout from such incidents is not limited to financial losses; it extends to reputational damage, loss of customer trust and even national security risks.
For businesses, sustainability and resilience represent a compelling imperative and opportunity. Identifying opportunities that arise from challenges and adopting a holistic approach to address competing priorities is critical to driving genuine leadership in sustainability and resilience. This means compliance with evolving regulations and gaining a competitive advantage.
Bridging the access gap is not just a moral imperative but vital for global stability. For businesses, embracing technology and collaboration is crucial in achieving positive water outcomes, respecting nature and nurturing communities in 2024 and beyond.
In 2024, businesses will likely focus on building supply chain resilience and leveraging lessons learned from the disruptions caused by COVID-19 to shape their supply chain management strategies.
Geopolitical conflicts
Natural
disasters
Trade restrictions
Changes driven by pandemic
Environment-related regulations
Supply chains
Navigating the dynamic landscape in uncertain times
Discover more in the report
How prepared are you for the year ahead?
Take up to nine short assessments to gauge your company's readiness for 2024
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1.1%
1.7%
2.6%
3%
3.8%
3.7%
4.7%
Source: Economist Intelligence Unit (EIU). Climate Change Resilience Index. 2019.
North
America
Latin
America
Africa
Western
Europe
Middle
East
Asia
Pacific
Eastern
Europe
Economic impacts of climate change
Average real GDP loss by 2050
Start
Although global supply chains have been gradually recovering from the unprecedented disruptions caused by the COVID-19 pandemic, businesses will likely face increased supply chain management challenges in 2024. Uncertainties persist regarding government policies and physical risks, primarily as businesses initiate long-term restructuring plans for their supply chains.
How prepared are you for supply chain disruption?
Preparedness assessment
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As we navigate an ever-changing and complex world, communities will likely encounter various challenges, prominently economic disparities, social cohesion and environmental concerns.
How prepared are you to foster resilient communities?
Preparedness assessment
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Nearly 700 million people could face water scarcity by 2030, perpetuating poverty and conflict. Bridging the access gap is not just a moral imperative but vital for global stability.
How prepared are you to face the water crisis?
Preparedness assessment
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Amidst the growing concerns surrounding climate change, the transition towards renewable energy is in progress. However, it’s not unfolding at the required pace or scale to meet societal goals for achieving net-zero emissions.
How prepared are you for the energy transition?
Preparedness assessment
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From the CSRD in the EU to the SEC in the US, rapidly shifting corporate sustainability regulations demand that businesses stay on top of new reporting and disclosure requirements.
How prepared are you to adapt to the evolving corporate sustainability landscape?
Preparedness assessment
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This year, the relentless wave of cyber threats is likely to continue unabated, evolving in sophistication and scale. The fallout from such incidents is not limited to financial losses; it extends to reputational damage, loss of customer trust and even national security risks.
How prepared are you to address cybersecurity risks?
Preparedness assessment
Start
Generative AI is not a mere technological trend; it is a seismic shift that is reshaping industries, sparking innovation, and altering the way we live and work in 2024.
How prepared are you to leverage the Generative AI opportunity?
Preparedness assessment
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A formidable challenge lies ahead: establishing resilience to address the intensifying disruptions caused by climate change and transitioning to a low-carbon economy.
How prepared are you to tackle the challenges related to climate change?
Preparedness assessment
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Businesses that take concrete steps to overcome economic headwinds and are prepared to capitalise on the next economic upcycle are well-positioned to outperform their peers.
How prepared are you to navigate the deteriorating global economic growth?
Preparedness assessment
Supply chains
Resilient communities
Water crisis
Energy transition
Sustainability
Cybersecurity
Generative AI
Climate change
Global economy
Global economy
Generative AI
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Transforming industries and shaping the future
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