The companies embracing the future economy – and its digital, sustainable tenets – are the ones holding up best at the dawn of the post-COVID recovery. And that’s good news for the global economy over the long term, according to Ian Bremmer, the founder and president of Eurasia Group and GZero Media.
Speaking as part of the virtual ANZ Finance & Treasury Forum 2020, Bremmer said it is the old economy which is finding it tougher as COVID continues to reshape global trade.
“The companies, the sectors that have been hit [by COVID-19] are the ones that are least-focused on innovation,” he said. “It’s the parts of the economy that are least-orientated towards 21st-century technology.”
“Those that are allowing the digital economy to grow, those that are allowing the sustainable economy to grow, those that are allowing the knowledge economy to grow, [and] those that are oriented toward the 21st century are the ones that are doing the best.”
Had a similar disaster hit the more-modern parts of the economy, according to Bremmer, the impact would be much worse for the long-term prospects of recovery.
He said the state of global geopolitics meant backwards-looking institutions are holding a lot of power.
“At least [the crisis is] actually putting more money in the hands of institutions that can do the most to respond to the next crises down the road,” Bremmer said.