As we enter the last quarter of 2022, forecasts about what awaits different sectors in 2023 have also started to be published. In the Economist Intelligence Unit's Industry Outlook 2023 report, which offers actionable insights across seven different sectors, it is predicted that e-commerce will grow by 6,1% and its share in global trade will exceed 14%.
As the world enters the third quarter of 2022 in the shadow of economic turmoil and geopolitical tensions, the first predictions for 2023 have started to come. The Industry Outlook 2023 report, which evaluates 2023 expectations in the automotive, consumer products, energy, finance, health, technology and tourism sectors, has been published by the Economist Intelligence Unit, the research and analysis unit of the world-famous The Economist magazine. In the report, which draws attention to the fact that the renewable energy demand will increase by 11% next year, the global economic growth forecasts for 2023 have been lowered. Ramazan Burak Telli, Chairman of the Board of Directors of Avrupa Investment Holding, which has investments in health, energy, recycling and tourism until today, shared his 2023 expectations in different sectors based on the report.
Pointing out that the new year will bring new opportunities and challenges, Ramazan Burak Telli said, “The general outlook indicates that high prices will benefit raw material producers, and that rising energy costs in many sectors will have a negative impact on operating profitability. But the world is more prepared for what may happen to it this year and preparing for the new year in a more resilient way. “A few positive developments can reverse the pessimistic mood by dissipating uncertainty.”
Renewable energy demand will increase by 11%
The report predicted stagnant growth in energy consumption in 2023, with demand increasing by only 1,3% globally. It was stated that extreme weather events and changing climatic conditions will challenge countries, while forecasts on the renewable energy front remained optimistic. Saying that the heat waves first in Europe and then in China in 2023 affected many sectors from food production to tourism, Ramazan Burak Telli, Chairman of the Board of European Investment Holdings, said, “Even though the energy crises triggered by geopolitical tensions delay the transition to green energy, next year A growth of 11% is expected in the renewable energy sector, led by the Asian market. Solar and wind energy alternatives, which offer a much brighter outlook compared to fossil fuels, are expected to hold strong opportunities throughout 2023. Of course, tightening policies of central banks increase financing costs and this situation keeps renewable energy investments at a limited level. However, the signs of a slowdown in interest rate increases from the US central bank officials may change the course during the year.
The share of e-commerce in global trade will exceed 14%
The report also pointed out that global retail sales will increase by 2023% in 5, but it was stated that rising costs will weaken profitability. Saying that the growth in e-commerce will remain limited, Ramazan Burak Telli said, “The Economist predicts a growth rate of 6,1% for e-commerce next year. Behind this situation lies the inflation, which has peaked values in many parts of the world, suppressing consumer demand and reducing the appetite for spending. Despite this, the fact that the share of e-commerce in global trade will exceed 14% proves the future of the industry and the permanence of online shopping habits. Especially with the growing middle class, increasing internet penetration and digitalization, a 20% growth in online sales is expected for economies such as the Middle East and Africa and Latin America. We can say that the slight slowdown in developed markets will be balanced with the rise in emerging markets.
“We follow global trends and shape our investments accordingly”
Expressing that the quarterly results from world-famous companies in the earnings season that started towards the end of October in the USA, alleviated the hopelessness that has prevailed in the market for a few months, Ramazan Burak Telli, Chairman of the Board of European Investment Holdings, concluded his evaluations with the following statements: Although it predicts that it will reduce institutional investments, we will see cautious progress as soon as the business world and monetary authorities begin to grasp the economic paradigm of the new era. As Avrupa Yatırım Holding, we have made investments in many sectors, from tourism to health, from recycling to agriculture, with our innovative, sustainable, value-oriented and responsible investment approach. In the new year, we will continue to monitor global trends, see opportunities in industries and take strategic steps that contribute to our vision of increasing the welfare of our country.”
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