Page 5 - ISQ UK_October 2021
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           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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