There has been so much focus on the US and European debt problems that the major economic story is just not discussed. The growth of merging markets is not declining. the future of the world is being determined outside the G3. Trade and development is critical if the developed world wants to improver their economic situation.
In less than 10 years the emerging markets will be larger than the developed markets. They will be taking more of the capital expenditures. they already represent more than half of all capital spending. This is up from 26% in 2000. Their demand in goods and services is staggering.
They represent over half the copper, motor vehicle sales, steel production, mobile phone subscriptions. They hold over 75 percent of foreign currency reserves and take half of all inflows for foreign direct investment.
Prices in commodities are not higher because of low developed market demand but prices would be significantly lower if the global demand was less.
No comments:
Post a Comment