2021-12-13 GC Agenda - Item 9 - Attachment 2-Noosa Economic Plan Review Update Report 2021

                                              NOOSA LEP REVIEW - Background Report - Draft Report



9.        Post-COVID Trends
9.1       Global Trends
In January 2021, McKinsey published a report highlighting the key trends that will emerge following
the COVID-19 pandemic. A summary of the key future trends, includes:
     •   Part 1: How the COVID-19 crisis and the recovery are shaping the global economy
             o The return of confidence unleashes a consumer rebound (given the constraints put
                  on to the economy through the COVID-19 crisis, consumers will spend heavily)
             o Leisure travel bounces bank but business travel lags
             o The crisis sparks a wave of innovation and launches a generation of entrepreneurs
             o Digitally enabled productivity gains accelerate the Fourth Industrial Revolution
     •   Part 2: How businesses are adjusting to the changes prompted by the COVID-19 crisis
             o Pandemic-induced changes in shopping behaviour forever alter consumer
                  businesses
             o Supply chains rebalance and shift (with many multi-national corporations seeking to
                  shorten their supply chains and produce more products closer to their key markets)
             o The future of work arrives ahead of schedule (with an acceleration of working
                  remotely and other technological solutions in the workplace)
             o The biopharma revolution takes a hold (with a generation of new drugs unfolding)
             o Portfolio restructuring accelerates (with capital flowing from some traditional
                  industries into others, based on the risks and experiences from the COVID-19 crisis)
             o Green, with a touch of brown, is the colour of recovery (that expects sustainability
                  to become as pervasive throughout the economy as technology has been over the
                  last decade)
     •   Part 3: How the COVID-19 crisis could change society
             o Healthcare systems take stock – and make changes (with most governments seeking
                  to prepare for future pandemics and ensure that the healthcare system is stronger)
             o The hangovers begin as governments tackle rising debt (so much stimulus has been
                  provided that governments will need to consider how to effectively deal with the
                  ensuing debt)
             o Stakeholder capitalism comes of age (the requirement for businesses to ensure they
                  are acting in a morally responsible manner will become more important)
All of these trends will have impact on the Australian, Queensland and Noosa economy.

9.2       National Trends
Figure 9.1 below shows various population trends likely linked to the effects of COVID-19. As
highlighted, net migration away from Sydney and Melbourne in favour of regional areas. While
Brisbane has fared better than Sydney and Melbourne, it is also seen a drop in migration. Regional
Queensland has experienced the most significant increase amongst regional Australia.
Many parts of regional Australia are adjacent to capital cities, offering people the option of still
travelling into the capital city, when required, but enjoying the local lifestyle and working remotely.
Many regional areas have seen strong increases in house prices, which may be linked to these recent
migration trends.




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