Megatrend / Shifting Economic Power.
1. Emerging Markets Will Gain Power
Faster growth rates and favorable demographics will be an important development factor in the rapid-growing markets for the next decade or so. The gap between ‘rapid-growth’ and ‘mature’ becomes lower. Emerging markets which are driven by their own nascent middle classes will become a focus point for the global population.
By 2030, 40% of the 50 largest cities in the world in terms of constant-prices GDP will be in China, number that will triple from today at $8 trillion to $25 trillion.
In addition, the fastest growing urban economies over the next 15 years will be mid-sized cities, starting to register on the radars of global companies as potential new markets. This group includes cities such as Surat (India), Luanda (Angola), Ho Chi Minh City (Vietnam), Phnom Penh (Cambodia), Yangon (Myanmar), and Dhaka (Bangladesh).
2. The World Becomes a Global Marketplace
This shift in economic power will result in a global marketplace in which the battle will be to get the best talent available for a diverse workforce that will provide a competitive advantage. As for the economies of the world, they will remain highly independent through trade. The need for stronger global policy coordination among nations will be driven by system linkages between the investment and financial system.
Meanwhile, domestic interests will clash and compete with the forces of globalization. This pushback will manifest itself in various economic, political and cultural forms, including anti-globalization protests, trade and currency protectionism, the imposition of sanctions to achieve political goals, as well as the strengthening of religious, nationalistic and ethnic movements around the globe.
Read the full report here: Oxford Economics: Future trends and market opportunities in the world’s largest 750 cities