Emerging Markets soon to turn rulers of Global Economy


Investments in Asia alone is expected to reach $ 7.5 trillion by 2020

Economy 1After the malevolence global regression phase, all world economies are striving hard to bring the best possible time in the business world. Both developed and the developing nations are working hand in hand for enhancing the global financial image. Majority of businesses are falling back to their normal behavior and have started reaping profits, the stakes of developed countries are rising. This is getting in good news for the years to follow. The one thing what is new in all this is the role of some developing countries; ‘emerging markets’ as they are known worldwide; they have become hotspots for investors from different industries.

Once famous for only their availability of natural resources and low cost labor, they are now ready to play the game all by themselves. Many of them have turned sufficient so as to run huge industries and truly emerge as super powers in the days to come.

Rapid increase in the population, constant growth in the economy and the essential role of the colossal middle class present in these countries are stated as engaging factors. These aspects get premium business houses interested in spending their investments in these growing countries. As these emerging markets grow the capital coming in from top industrial giants go up. They bring in good amount of money along with the advance technologies that help in further growth. However, the previous tendency of no competition has now vanished and big corporate houses have the local domestic players as their counterparts.

Let us now see the emerging trends in these developing countries which set up the stage for brighter business in the future.

Emerging markets will be the driving forces for worldwide growth:

Market studies indicate that a chunk of 70% of global economic growth will come from the emerging markets. As the industrialization process grows, there will be larger business units setting up their base in these locations. 40% of this growth is predicted to flow in from the Asian regions China and India. These two are already named as superpowers of the Asian belt. According to the International Monetary Fund (IMF) the total GDP of the emerging markets is on the edge of overtaking the GDP of the present super powers. The upcoming markets are already attracting foreign investments and the FDI has gone up to 50% in the FDI inflows and outflows account to a notable volume of 35%.

BRIC nations along with the Asian regions are spotted to be the most successful destinations for these foreign investments. It is expected that the BRIC nations (Brazil, Russia, India, China) will account for more than 50% of the global GDP growth, this is ought to cement the positive status of these countries and turn them into much stronger economies.

Emerging markets will rule the global competition scene:

As developing countries are growing in their status, the companies operating there are taking the center stage. The growth trends not only are changing the face of the competition; but they are also raising the bar. For instance, leading auto brand in Asia, Tata Motors has come up with its cheapest offering the Tata Nano which is priced at $ 2,900. This is the cheapest car offered in the entire globe and the company is planning to launch a version in the European auto markets as well. Thus, the competition is getting tougher in both the developed and developing markets. This is done by a company operating in the emerging nation, thus they are already ruling the markets and this trend is ought to increase in the immediate future.

Rising population and prosperity driving consumer growth and urbanization:

Rising population was once seen as a threat for these developing countries, the same is now viewed as an opportunity for growth. The vast working class and the increasing disposable income levels are proving that the methods are working successfully. According to a study, the global head count between the present and 2050 is estimated to reach 9.1 billion and the combined purchasing power of the global middle class by 2030 is predicted to reach a massive amount of $ 56 trillion. Notable factor being that 80% of the total demands are ought to originate from the Asian countries.