The Future of the Creative Economy

Over the longer term, the creative economy is likely to be a key driver of economic growth as governments around the world look to rebuild their economies in the wake of the downturn associated with Covid-19. It is reasonable to expect that the sector will return to its long-term trend of growing faster than the wider economy as, for example, advertising is likely to recover strongly with the wider economy and other sources of income have been more resilient. The fundamental driver of creative economy growth remains that when consumers have more to spend, and have increasingly sated their demand for other goods and services, they are more likely to spend that additional income on outputs of the creative economy. The importance of the creative economy for overall economic performance is therefore likely to grow. This means its importance for policymaking is also likely to continue to grow, with countries more or less well-positioned to take advantage of that underlying growth in global demand. While this study focuses on developed economies, middle-income countries are likely to show even stronger growth to the extent their overall national income grows faster.