The economic power shift megatrend captures first and foremost the rise of the new centres of economic activity in developing world.
This megatrend remains steady, as China and India will continue as they keep making gains in productivity whilst having the world’s largest populations.
Over the coming years we will see a restructuring of the global economy with non-OECD economies expected to account for 57 per cent of the world GDP by 2030. By 2040, the economies of E7 countries will be double G7 countries.
This growth is also giving rise to a new middle class or “mass affluent” with a significant purchasing power. Two-thirds of the global middle class will reside in Asia Pacific by 2030.
As global economic power continues to shift to rapid-growth economies, new patterns of trade and investment will emerge prompting businesses and governments to rethink opportunities as well as risk.
While economic power shifts have brought many gains, they have also been associated with patterns of economic loss, and used to bolster forms of protectionism and nationalism, with large potential consequences for business, individuals and communities.
Understanding the contours of these economic power shifts, and engaging with new markets and communities will become more important than ever.