Shift In Global Economic Power

Shift in global economic power

On current trends, the aggregate purchasing power of the ‘E7’ emerging economies – Brazil, China, India, Indonesia, Mexico, Russia and Turkey – will overtake that of the G7 by 2030. By 2015, Asia Pacific will have a larger middle class than Europe and North America combined. And the global emerging middle class will represent an annual market of some US$6 trillion by 2021. Such trends and tipping-points mean the traditional way of classifying economies is becoming increasingly irrelevant.

• Emerging markets will challenge developed economies in the production of high-end consumer durables.
• Today’s ‘F7’ frontier markets – Bangladesh, Colombia, Morocco, Nigeria, Peru, Philippines and Vietnam – will become tomorrow’s growth markets.
• An expanding pool of highly skilled talent will fuel this emergence, with people from emerging markets increasingly leading global multinationals.
• Developed countries will benefit from ‘re-shoring’ as wage differentials close.