These trends will shape the economy and markets in 2022 and beyond

Momentous demographic shifts around the world, the emergence of chronic diseases associated with ageing, and ever-growing medical costs are strong tailwinds that are likely to create further upside potential for areas related to digital health, genomics and extended longevity in the long term. 

The greater adoption of digital-health technologies and other innovative solutions such as gene-based therapies could strengthen our resilience for present as well as future health threats and ease the pressure on current healthcare systems. 

China is likely to continue to catch up with Western nations in healthcare innovation, especially under the notion of “common prosperity”, in which affordable access to high-quality health care is seen as a top priority.

The key aspect of such disruptions in the life-science space is the more general proliferation of data. 

Going beyond digital health care, life sciences will become more and more similar to information technology as molecules and compounds are created artificially and personalised using artificial intelligence, robotics and nano-technology. 

This trend is part of the “everything tech” theme that we are seeing emerge as every industry, from manufacturing to energy, is moving to become a technology business.

Energy transition has emerged as a key point of discussion over the past few years, especially as sustainability becomes a priority for many economies. Where are we heading?

The world has embarked on a major shift towards net-zero carbon emissions. The energy transition needed to achieve this is in full swing, and the “electrification of everything” — where new technologies are satisfying our growing energy needs and reducing our dependency on fossil fuels — has started.

Decreasing investments into fossil fuels, coupled with economic reopening effects as well as some ill-timed political decisions, have led to supply-chain disruptions, energy shortages and soaring prices. This shows that the world is struggling to shift to renewables at this fast pace and that the swift energy transition can act as an inflationary force in the short term.

In the long term, we believe that technological advancements in this space will increase productivity enough to act as a disinflationary force. 

The adoption of clean energy sources in society is well under way. While it is clear that the transition away from fossil fuels towards cleaner energy sources will take more time and require great effort from both governments and corporations, we believe that it is an inevitable development that will be successfully implemented in the long run, despite some noise and market disturbances in the short run.

Finally, the topic of the decade: environmental, social and governance (ESG). With governments now making pledges to achieve a certain target within a certain period, how achievable do you think this is? 

ESG criteria have been the buzzwords of the past few years and will continue to be one of the most important trends to follow this decade. 

The UN Climate Change Conference (COP26), which was held in Glasgow in November 2021, has underlined the important role that the corporate sector in general, and the financial sector specifically, play in decreasing the world’s environmental footprint. 

The growing environmental and social tensions mean that corporations need to redefine their purpose and should take into account not just shareholder value but also their impact on all stakeholders including workers, suppliers, communities and society at large. 

While it is clear that finance will play an important part in a sustainable future, one has to be mindful that finance is not the ultimate solution and cannot do it alone. Governments, corporations and individuals have to work together towards this common goal and take responsibility for driving this much-needed transition.