The economic balance of the world is shifting and it is important to realise that the western economies – the so-called first world nations – are no longer the only ones to watch. There are a number of emerging economies that have become exceedingly strong, and this is going to change the balance over the next few years.
Which economies are becoming stronger?
The Organisation for Economic Co-operation and Development has predicted that China and India, along with a number of other nations in the developing world, will overtake their western counterparts within 50 years. At present, the US is still hanging on to the title of the world’s largest economy, but China is now in second place and some experts have claimed that China’s economy is actually now larger than that of the US. China is closely followed by Japan, while India is snapping at the heels of France, Germany and the UK. China has been stronger than the Eurozone for the last few years.
Massive investment into modern technology has ensured that eastern countries can take their place on the world stage when it comes to a strong economy. It also helps that countries that once were slightly xenophobic, preferring to deal only “in-house”, are now prepared to look beyond their own borders so firms can expand globally.
Predictions made by the US Department of Agriculture for 2030 show that the US will be struggling to hold on to its place as the world’s top economy as its GDP drops. However, China is set to double its economy. The same prediction sees India overtaking Japan and Germany to claim third place. In addition, Brazil is set to grow to take sixth place on the list, ahead of the UK and France. Mexico, Indonesia and Nigeria also feature on the list of the predicted top 20 economies in the world.
However, it is also predicted that other developing nations will grow significantly. It is thought that Uganda will break the top 100 economies by 2030 and many of the nations that have the biggest changes coming their way will be located in Africa, Asia and the Middle East.
It should be remembered that these predictions are just that – predictions. There are many variables that cannot be accurately predicted, so the economic landscape may not look exactly like this, but the estimates are based on actions that these countries are taking now, which are making a big difference to the way that they operate.
How is it changing?
It is the willingness of some companies and business people to take risks by starting businesses and expanding into developing economies that is helping to make these changes. Businessmen like Fahad Mazyan Al-Rajaan, who made his name in banking in the Middle East, have launched new business ventures in other parts of the world, including Asia. This confidence on the part of Al-Rajaan and his contemporaries means that developing nations are given a strong chance to compete with western economies.
The global economy is changing all the time and it is something that can be affected by many factors. With this in mind, predictions should be watched carefully, but there is no doubt that a number of developing nations are now surpassing expectations.