By 2030, we estimate that the E7’s purchasing power will overtake that of the G7. As incomes rise in these markets, they will contribute an increasing share of the global middle class. In 2015, we estimate that Asia Pacific will have a larger middle class than Europe and North America combined.
While the distinction between the E7 and G7 remains important, so are the divergences which are opening up within them. For example, Italy’s economy is the same size as it was in 2000 in real terms, whilst Canada’s has expanded by over 30%. China’s economy has tripled in size whilst Mexico’s has “only” grown by a third. But emerging markets still face challenges if they want to escape the middle income trap and catch up with advanced markets.
View the infographic here
What will the global economic landscape look like in a decade’s time? Put simply, we need a new view of the global economy:
To prepare for this new landscape, today’s business leaders need to take a closer view at which markets hold the greatest growth potential. In our recent global CEO survey we found that CEOs are already doing this. Saudi Arabia and Malaysia are among the top markets cited as important for their growth prospects in the next three to five years and this is also backed up by the results of our new ESCAPE index.
For our latest long-term global growth projection for 32 of the largest economies in the world, please see our latest World in 2050 report.