Drive or be driven - the convergence of industries

We are in the midst of an unprecedented era of digital disruption, which is characterised by the blurring of boundaries between traditional industries. Digitisation and improvements in technologies, such as artificial intelligence (AI) and cloud computing, have created a foundation for companies to harvest synergies that would previously have been out of reach.

The possibilities opened by digitisation have encouraged companies to enter seemingly unrelated industries, and challenge existing industry conventions. The future of traditional industries will be shaped by these 'new entrants' as we know them today. In our lead article of the Europe Monitor, we will examine convergence trends, determine how it has grown over the years and what we can anticipate.

New challenges create more uncertainty

Many challenges for the European economy came to the surface by the end of 2018. This created an ambience of uncertainty and led to a recalibration of projections. Global economic activity will continue to decelerate in 2019, putting more pressure on underperforming entities such as enterprises and governments, providing openings for more market volatility and political instability. Yet, resilient domestic demand, potential reforms and stimulus policies will counterbalance this. These factors determine how the European economy will proceed in the upcoming year, but what direction can we expect?

Strong growth Swiss economy 

The Swiss economy is booming, with GDP growth expected to have reached around 3% in 2018. GDP has risen rapidly over the last quarters and unemployment is falling as a result. Manufacturing has enjoyed a particularly strong growth, with capacity utilization now at a level not seen since 2011. In our country update, we will briefly highlight the factors behind this growth, and take a forward look at what might be in store for the Swiss economy.

Contact

Barbara Baarsma

Barbara Baarsma

Director, hoofdeconoom, PwC Netherlands

Tel: +31 (0)62 420 47 07

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