If things could not get harder, some are forecasting a stock market crash – but is it the start of a new focus of economics emerging?

Companies are facing challenges all around them and now some experts are forecasting a new crash on the stock market; others argue that it will just be a much-needed correction of between 10-15%.

Or is just a new economy emerging?

There have been a number of great crashes over the last century including the horrific ones of 1929 and 2008 so it is understandable that many feel fear creep into their minds.

There are valid reasons to be concerned. The supply chain disruptions caused by the pandemic seem to be triggering price inflation worldwide. Add in increased inflation with reduced consumer spending, a recession often follows. There is, therefore, fair logic to be concerned. It is going to be troublesome six months ahead.

The counterargument is there are positive signs too. The pandemic seems to be slowly ending, now that vaccine rollouts worldwide are making solid progress. The jobs market is buoyant and all this has enabled industries to reopen and beginning a recovery process.

This would suggest that even if the worst does happen, the long term looks promising. There will be many who will argue that this is the time to stay calm and invest as opportunities will exist.

But maybe the biggest change taking place is that the Green Industrial Revolution is now solidly in play. UK wind power generation has surged more than 700% in the last 10 years and it is about to grow four-fold. The UK is viewed to be a market leading force in this area and that this will see benefits return to the UK.

Moreover, the drive towards green energy will see further changes take place across all markets with more and more turning towards new solutions resulting in changes across traditional economies.

It may be that a new model and new economics are emerging which will require new learning and new understanding.

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