Emerging markets is a term that is used to identify global countries that are in a state of economic and social progress. In the past, when compared to the developed countries such as the United States, Japan and Western Europe, they were often referred to as less economically developed countries. Whichever way they are ultimately defined, there is no mistaking that the economic development of these previously under-developed countries, is driving the global economy forward. And, in contrast, it is the developed countries that are slowing down the worldwide progress.
The fact that there are so many emerging markets in the global economy today is remarkable in itself, but another eye-opening statistic is that they represent more than half of the world’s total population base. Translation: future consumer base. When you take into consideration China, India, Brazil, Russia and even Africa, it’s not difficult to understand why many industry analysts have predicted the world is heading to a global economic boom, before the year 2020. That is expected to gain traction sometime around the opening of the Panama Canal expansion in 2015 and continue to unfold over the following five years.
These emerging markets are expected to drive the economic boom, as over the course of this time period their economies are expected to be generating even more domestic prosperity, which creates even more consumer demand, and in turn increases the need for the steady supply of consumer goods. Economists have factored in that the United States and Western Europe will indeed be participants in the new, more prosperous, global economy in the near future, but these developed countries still have a long way to go to be prepared for it. The good news is that there are positive signs of economic recovery in the West and as long as they continue on their path to restoring their strength, the global economy will continue on it’s path to reaching it’s vast potential.
The “true” global economy expected in the future is destined to be more inclusive and prosperous than ever before. When looking at the history of it’s own “development” over the last century and into the start of this century, the global economy in the 1900’s was dominated by the “developed countries” with little chance for the under-developed countries to join in the prosperity. Since the start of the 21st Century, and into the foreseeable future, it looks like the new developing countries are moving into the driver’s seat of the global economy and are emerging with profitable investment opportunities, that will take it to new heights. All that remains to be seen is whether the Western developed countries will be comfortable riding in the back seat, as passengers.