Global Economy may be in a tailspin but Asia's Love Affair with Luxury Goods continue to BLOOM.......
In the 18 months to June 2011, the fastest growth in wealth was registered in Latin America, Africa and Asia. While the US, despite its economic problems, was still the world’s largest wealth generator in the period, adding $4.6 trillion to global wealth, China came second, followed by Japan, Brazil, Australia and India.
“Over the next five years, the wealth of emerging economies is expected to leapfrog the developed world, due to their more promising growth prospects,” the report says.
“Wealth in China and Africa is projected to rise by over 90 percent to $39 trillion and $5.8 trillion in 2016 respectively, while wealth in India and Brazil are forecast to more than double (to) $8.9 trillion and $9.2 trillion (respectively).”
The projected increase in wealth in the fastest growing emerging economies in the next five years, when compared with the growth of wealth in the US over the course of the 20th century, forecasts a dramatic leapfrogging of emerging economies.
Total wealth in China is currently $20 trillion, equivalent to that of the US in 1968, according to the report. In the next five years, it is projected to reach $39 trillion, a level the US achieved in 22 years between 1968 and 1990.
At $4.1 trillion, India’s total wealth in 2011 is comparable to the US in 1916. However, it is projected to reach $8.9 trillion in the next five years, equivalent to what the US achieved in 30 years between 1916 and 1946.
Similarly, Brazil’s total wealth is expected to grow from $4.5 trillion in 2011 to $9.2 trillion by 2016, equivalent to the level of wealth gained in the US over 23 years from 1925 to 1948.
Comments from Prathap G - As far as India is concerned, with the projected $8.9 trillion in the next five years, the bloody Indians (as my nephew calls them), will be like in 5 years what the USA was in 1946. Wake up the rack-rented politicians and the lousy bureaucracy in India, and take a leaf from China. In fact, I am comptemplating a change in my Indian citizenship to that of China, and that too, pretty soon.
Yet another interesting news in today's Khaleej Times, Dubai, is that, US President Barack Obama asked Congress for another $1.2 trillion in government borrowing. Borrowed money that is, but as USA and China compete, India will remain the playground of lousy politicians, and poverty. Kameenas galore in India Mahan.