Since the turn of the millennium, emerging economies have consistently outperformed their developed counterparts in real GDP growth. The emergence of jobs in tertiary and higher skilled industries have helped elevate incomes, in turn, yielding a thriving middle class that has divested greater portions of expenditure toward discretionary goods and services. That said, as of 2017, absolute consumer affluence was still very much in favour of developed economies — the question is — will this change by 2030?
Real Disposable Income per Capita in G7 and E7 Cities 2030
E7 cities, particularly those in China, India and Indonesia, are forecast to witness remarkable real GDP growth, with their real economies doubling over the period to 2030. Meanwhile, major G7 cities are expected to still outweigh on the sheer size of their economies by the end of the next decade.
Euromonitor expects by 2030 Chinese cities will assert their influence the most from the E7 group. Asian anchors, Beijing and Shanghai, will climb into the top 10 largest metropolitan economies within the overall group under analysis. Emerging gateways – Shenzhen, Guangzhou and Tianjin – will join the top 15 league.
The Emerging versus G7 Cities strategy briefing compares household affluence in 2030 based on various economic indicators forecast by Euromonitor International of cities in the G7 (Group of seven countries composed of the US, UK, Canada, France, Germany, Italy and Japan) and E7 (Emerging seven countries composed of China, India, Brazil, Mexico, Russia, Indonesia and Turkey) bloc.