Page 5 - ISQ UK_October 2021

OCTOBER 2021

Source: The UK Green Building Council (UKGBC)

Global populations are due to change in other ways over the For investors, it is always a world of change, even beyond
next couple of decades. The growing number of older people the steady rise, during the 2020s, of Generation X and Mil-
is a cause for real celebration, but it does also mean height- lennial investors compared to Baby Boomers. It will
ened healthcare challenges while also having implications certainly make careful stock-picking more relevant as
for governments’ taxation requirements. For most developed already highlighted so far in global markets in 2021.
market countries over the next twenty years, it would sug- Challenges always bring opportunities too. It would be more of
gest a 5-10% proportional GDP increase to meet the tax bill. a worry if climate change, ageing populations and government
Whilst countries such as Germany and Japan have been debt levels were not major points of discussion. Life, business
particularly forward-looking by focusing on long-term solu- and financial markets are all always a trade-off. Whilst there
tions to cope with the demands that come with an ageing may not always be solutions, there are always opportunities to
population, avoiding higher taxation levels becomes more improve (and invest).
difficult. Meanwhile, even in the emerging markets, China’s
ageing population problem continues to cause economic
concerns (providing a justification for the country’s gov- KEY TAKEAWAYS:
ernment to focus more on ‘common prosperity’ efforts for • The international climate summit COP26 is held in
all business sectors). As shown by smaller family norms in early November.
the developed markets, China’s extension of its two-child
policy to three children is unlikely to have much of an effect. • Discussions are focused on key issues over the next
two or three decades.
• Ageing global populations are set to have impacts on
tax rates.
The real key for all countries around the • Challenges always bring opportunities too.
world remains to embrace change.

The real key for all countries around the world remains
embracing change. Whilst jobs in some sectors are changing
due to an evolving world centred on more technology, the
highest job creation numbers will come in areas impacted by
home health and personal care. So whilst proportional taxa-
tion levels are likely to rise, it is not all about the consequence of
heightened government borrowing levels over the last decade.

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