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Investor Presentaiton

Megatrend 6 Slower growth in the developed world Growth in the developed world is expected to continue to be slower than experienced prior to the global financial crisis 35, driven by long-term trends of slower global population growth and emerging economies increasing their share of global production. Slower population growth is leading to an ageing population and increased demand for health and aged care services, especially in developed economies. This is coinciding with the rapid growth in manufacturing in emerging economies, as they seek to raise their own living standards through industrialisation and urbanisation. In this environment, traditional sectors such as primary industries and manufacturing will need to adapt in order to compete in global markets. Megatrend 7 Access to capital There is a worldwide glut of private savings associated with population ageing and anxiety about the future. Managers of these savings are looking globally for investment opportunities. In addition, the slower growth in developing markets will mean that capital from these markets is likely to look outwards for new markets to invest in to achieve growth. Governments are having to become more creative in funding the delivery of services by engaging the private sector in innovative financial arrangements. The stable returns from infrastructure projects are increasingly attractive to managed and superannuation funds. More international investment funding partnerships will be essential in addressing the growing demand for spending in areas such as health, aged care and infrastructure. Megatrend 8 Digital disruption The rapid growth of digital technologies and the pervasiveness of the internet means that trade increasingly occurs on-line. This is affecting the traditional distribution models for many businesses. Although e-commerce takes Queensland's startups and SMEs into a global market, it also means that markets are more competitive and increasingly complex to navigate. Disruptive technologies such as online product and service supply, social media, ride and room sharing and financial technologies are affecting traditional ways of doing business, and are supporting flexible industry relocation. Digital disruption is allowing firms to bring back functions that were off-shored due to wage costs, enabled by advances in robotics, 3-D printing, and artificial intelligence. Projected average GDP growth to 2018: Advanced economies = 1.8% Developing & emerging economies = 4.9%3 50% of the total global stock of capital will reside in the developing world by 203037 By 2030, 50% of the world's population will have access to the internet, up from 34% in 201238 Queensland Trade and Investment Strategy 2017-2022 19
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