Emerging economies were recorded to be doing so since as early as year 2000, their GDP figures/performance has outperform US. Moving forward the chart below is pointing towards a trend that looks irreversible.
India according to IMF is projected to be the world’s 3rd largest economy by year 2035, looks like it’ll be earlier. See chart below. (Source IMF Oct. 2009) While the rest will be supported by reports from World Bank etc.
US consumer were the blame for the recent global rescission as their excessive spending were the main reason while their savings rates among the middle income were poor or low.
So, as emerging economies raise their expenditure thus, increasing consumption, will this result in a reduction of savings rates? You guess is as good as mine. After the 1998 Asian Financial Crisis and also a culture that does promote savings, the engine of growth will be here to stay.
Next is the population in these economies, just taking a look at Asia, the numbers will point to a consumption base Asia economy with an export orientated support, also lead by emerging economies. (see chart for populations, rather outdated but believe me the numbers are increasing daily)
Tj
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