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Emerging markets (EMs) like India, Vietnam, Philippines, Indonesia and others will drive global economic growth, highlighted a report by S&P Global.
The report stated that according to projections, these emerging market economies will be key contributors to global growth. These countries are expected to grow at an average of 4.06 per cent of GDP through 2035, compared to just 1.59 per cent projected for advanced economies. By 2035, emerging markets like India will account for around 65 per cent of global economic growth. "Emerging markets will drive global growth in the coming years, but the next decade will be pivotal for solidifying their progress... By 2035, emerging markets will contribute about 65 per cent of global economic growth" said the report. According to the report, Asia-Pacific countries, including India, Vietnam, and the Philippines, are expected to be the main drivers of this expansion. Notably, by 2035, India will solidify its position as the world's third-largest economy, while Indonesia and Brazil are predicted to rank eighth and ninth, respectively. This shift reflects the increasing economic power of emerging markets in shaping the global economy. "India will be cemented as the world's third-largest economy, with Indonesia and Brazil ranking eighth and ninth, respectively," said the report. As per the report, one of the key factors contributing to the growth of these markets is their favourable demographics. With old-age dependent populations expected to average only 24 per cent through 2035, these countries will benefit from a bigger labour force and expanding consumer markets. This demographic advantage will support their economic expansion in the long term. The report also mentioned that technological advancements are also expected to boost productivity in emerging markets. While historically, research and development investments in these regions have been low, the coming decade is expected to see progress in areas like artificial intelligence (AI), automation, and advanced robotics. However, these developments may disrupt labour dynamics, requiring emerging markets to adapt to new technologies to maintain their growth trajectory. (ANI)
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