Sunday, 19 May 2013
Constant Global Economic Growth Expected For Years To Come
It’s interesting to look at how much the global economy has grown since the turn of the century and just how big leading economic analysts believe it could be by the year 2030. For starters, the world’s economy has doubled since 2000 and is expected to double again by 2020 and experience a further doubling by 2030 if the financial fortune tellers are correct in their projections. Based on a number of factors, it looks like they won’t be far off, barring any further large-scale financial meltdowns like the one that spawned the recent Great Recession in Europe and the United States. Let’s hope these nations have learned a valuable lesson and make reforms that are necessary to make sure it never happens again. They are currently working on it.
While Europe and the U.S. continue to struggle to right their economic ships, many of the rest of the world’s countries have been continuing to build their economies. In fact, it has been the previously “under-developed” nations that have been driving the global economy forward while the “developed” members in the west have been busy digging themselves out of their past investment holes they put themselves in. There are however, signs of recovery in Europe and the United States and when their economies get back into full swing in the next few years, the global economy at that time is expected to produce an economic boom, soon after the opening of the Panama Canal expansion, projected to be ready sometime in late 2015.
The rise of the multitude of emerging consumer markets, particularly in the east and the south, is a significant factor why analysts project this global economic boom. The reason being is that these emerging markets, including China, India, Russia, Brazil and Africa represent about half of the world’s total population base. Once their domestic economic policies kick into high gear in the next few years and their prosperity reforms truly begin to flourish, there will be a huge rise in global consumer demand creating many more business and investment opportunities to capitalize on as a result. There is little doubt that the global economy has a great chance of doubling in size if all this economic momentum continues at the pace it has been going the last 12 years. Even the European Crisis had little effect on slowing down these emerging markets in the last five years.
Around the world, over 140 countries are investing tens of trillions of dollars into port and transport infrastructure upgrades in order to be ready for the new future global economy and meet the increased consumer demand. The signs are evident. Those nations who believe that the future global economic prospects are bright and are ready for it, will have the best chance to compete for it’s fruitful bounty. I for one find it difficult to believe that all these countries would invest all this money, if they didn’t believe it would pay off in the future.