Urbanization in the emerging markets is making their presence and importance obligatory in the global economy.
Past decade has brought noteworthy changes and monumental shifts in the economic balance of power. Emerging market economies are expected to lead the global economy in 2013. Navigating past the strong economic headwinds, these countries seem to lead the charge. Emerging markets have physical and financial infrastructure such as banks, stock exchange and unified currency. Globalizing on their rates and expansion, these countries are getting dependent on the strength of the global economy. A McKinsey report predicts that by 2025, the annual consumption in the emerging markets is likely to grow and reach $30 trillion. This is a great opportunity for brands seeking entry into new markets.
Slow growth for the developed economies:
There is an increasing importance of peripheral nations in the global economy. An IMF report reveals that global economy is predicted to expand by 5.7% annually during the period 2013-2017. Economies of the developed nations grew by a mere 1.3% during 2012, affected by the eurozone crisis. On the contrary, there was a 5.3% growth observed in the emerging economies. While growth in the mature economies is expected to be moderate, emerging markets are likely to catch up soon. Europe, US, and Japan would face a period of slow growth. Imbalances would continue to untangle, and keep the markets in these countries on the edge for the foreseeable future.