The global balance of the world’s big spenders and buyers is shifting. The total share of world imports is moving away from the developed economies and towards the emerging markets. You knew this. But it’s happening sooner than you think.
Based on forecasts from the WTO and The Economist, here are ten key facts about the growth of the emerging market economies, some of which you should be nothing less than shocked by.
Amazing Facts About the World’s Developing Economies
1. Emerging economies already produce 50%+ of the world’s exports
2. In 2012, emerging economies will also handle 50%+ of world imports
3. Almost 60% of U.S. exports will go to emerging economies in 2012
4. The total real GDP of the developed economies in Jan 2012 will be no higher than it was in Jan 2008, but the same figure for the emerging economies will be up 25%
5. Emerging markets combined GDP will account for 40% of world GDP in 2012
6. Emerging markets will comprise about 50% of total global retail sales in 2012
7. Emerging markets already purchase the majority of the world’s automobiles and cell phones
8. China will surpass the U.S. as world’s biggest importer in 2014
9. In as little as 10 years, emerging market revenues might be as much as 50% of those of the biggest multinationals
This means that emerging markets should, perhaps, comprise a proportionate amount of your investment portfolio if they don’t already.
While U.S. multinationals will certainly benefit and ride the wave of emerging markets growth for at least the decade to come, don’t place all your eggs in that basket, but start keeping an eye out for emerging blue chips abroad.
It also means that it is definitely time for aggressive investors to have a foothold in the frontier markets (Africa, the Middle East, Eastern Europe), which are rapidly emerging as the new emerging markets.Related Posts
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