Global economy is ready to rise in next decade over growing emerging markets

The Global economy is composed for a momentous shift, with emerging markets driving growth over the next decade. According to S&P Global's latest research, these markets will contribute approximately 65% of worldwide expansion by 2035.

Asia's emerging markets, particularly China, India, Vietnam, and Philippines will forefront this growth, with an average GDP expansion rate of 4.06% through 2035. This exceeds the 1.59% growth rate projected for advanced economies.

The S&P Global’s research highlights several key trends:

Certain emerging markets, such as Malaysia, Brazil, Indonesia, and India, show strong fundamentals, including market potential, policy stability, and institutional quality.

Despite progress, significant gaps in income levels will continue. By 2030, the median GDP per capita in leading emerging markets will trail developed markets by nearly 70%.

While public debt is rising, emerging markets have strengthened their external positions, strengthened reserve barriers, enhanced monetary policy frameworks and reducing vulnerability to global financial shocks.

To maintain competitiveness, emerging markets must prioritize investments in skills development and manufacturing automation.

The transition to renewable energy will also shape emerging markets growth trajectories. With abundant resources and decreasing technology costs, these markets are expected to produce approximately 6,000 gigawatts of clean energy capacity by 2040, demanding over $5 trillion in investments.

Head of Global Ratings Services at S&P Global Ratings Yann Le Pallec highlighted, Emerging markets are poised to reshape the global economic through domestic growth and strategic addition into global supply chains.