Showing signs of recovery, the global economy is projected to double in size by 2032 and nearly double again by 2050. China will outstrip the US by 2017 (measured in terms of purchasing power parity). And India is likely to become the third ‘global economic giant’, a long way ahead of Brazil, which we expect to move up to fourth place, ahead of Japan.
As the emerging economies become bigger and wealthier, demand for services is rising. This phenomenon is already shaping global markets: in 2010, emerging economies spent more than the G7 on imported services for the first time since reliable records began.
These long-term growth trends present many opportunities and challenges. China, India, Brazil and other emerging economies will become large consumer markets, not just low-cost production centres. And, with annual growth projected to be only 2% in the advanced economies, companies will need to look increasingly to other markets.
The booming trade in services is one area that looks particularly promising. Natural resource constraints, such as those relating to energy use and climate change, will also boost demand for new, greener technologies.
But the emerging markets can be difficult places in which to do business. The ability to understand and adapt to local rules and customs will be essential, as will the right entry strategy and, where appropriate, the right partners. Good relations with local government and regulatory bodies will also be crucial. And, in some cases, the best production centres may not be the largest consumer markets.
08 Dec 2014
Christmas spending is a ‘make or break’ event for retailers. In most countries retail sales spike during the last two months of the calendar year.
01 May 2013
Economies around the world are recovering at different speeds. We are now seeing the rise of a ‘three speed’ economy, with the Eurozone in the slow lane, the US in the middle lane, and the emerging markets in the fast lane. This month, we’ve interviewed the former President of Cyprus, George Vassiliou; in his opinion the Eurozone needs to integrate more to overcome its debt crisis. Finally, we have focused on equity markets which, in the case of the UK and the US, are back up to their pre-crisis levels.
21 Dec 2012
We look at the biggest challenges facing the world's economic stability, including economic reform in the Eurozone and bringing down the long term deficit in the US.
05 Jun 2015
It’s been almost five years since the beginning of the ‘Arab Spring’ which brought about significant change in North Africa and the wider region.
28 Feb 2014
An interview with PwC Malaysia on the prospects for the Malaysian economy.
28 Feb 2014
Emerging markets have been struggling as poor external positions and economic governance are becoming clearer.
09 Feb 2015
Cheap oil, QE and Greece - what does it all mean?
04 Aug 2014
Measures to improve infrastructure, reform the tax system and allow more foreign investment in the defence and insurance sectors.
10 Jul 2015
Who will top the G7 economic growth league table?
02 Apr 2013
After a quiet start to 2013, the latest episode in the Eurozone crisis in Cyprus provided a reminder of how fast events can unfold. The bailout negotiations revived fears of a disorderly bankruptcy and Eurozone exit.