New coordinates to navigate global economy

Research and studies data, suggest, global economy is projected to double in size by 2032 and again by 2050 – China will outstrip the US by 2017 (measured in terms of purchasing power parity) – India is likely to become the third ‘global economic giant’ – Brazil, expect to move up to fourth place, ahead of Japan.

Demand for services will rising as the emerging economies become bigger and wealthier. This phenomenon is already influencing global markets: emerging economies spent more than the G7 (in 2010) on imported services for the first time since reliable records began.

How does this relate to your business?

These long-term growth trends offer many opportunities and challenges. China, India, and other emerging economies will become large consumer markets – not just low-cost production centers – however, annual growth projected to be only 2% in the advanced economies, businesses will need to look more and more to other markets.

Then again 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 centers may not be the largest consumer markets.