Sweeping Shifts in Worldwide Economies: A Look into the Future
Euromonitor Economist, Manushi Jain, discusses the movement in world economies, with a prediction of the top 10 economies by 2020. These shifts in the economic market will come in waves:
• By 2017, China will become the world’s largest economy, surpassing the United States
• By 2012, India will overtake Japan to be the world’s third largest economy
• By 2012, Russia will surpass Germany to be the fifth largest economy in the world
• Mexico also enters the top 10 by 2020, overtaking Italy.
There are several benefits as result of these shifts. With more emerging markets entering the top 20, and these markets having higher populations, consumer goods and services industries are positively affected. There is also an emerging middle class in many emerging markets, eager to spend money on luxury goods. Additionally, a rising youth population in emerging economies means positive growth for fast moving goods markets.
However, there are disadvantages to this shift in ranking. Stricter regulations in many of the countries means goods are more difficult to move. Many of the economies, including China, India, and Russia, contribute immensely to global warming. Finally, social unrest is more prevalent in fast-growing markets.
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