Emerging markets (EMs) will overtake the Western world in terms of the collective nominal size of their economies by 2050, with China and India as the second and third largest behind the US, according to Capital Economics’ long-term forecasts.
Over half of global growth in the next ten years will be driven by EMs, potentially reaching nearly 60% of growth by 2050, according to the latest forecasts. India is anticipated to spearhead this growth, with predictions of it becoming the world’s third-largest economy by as early as 2026.
“On our forecasts, economies such as Vietnam, the Philippines and India may grow at around 4-5% per year over the next few decades. India will headline the rise up the rankings. Indeed, it will overtake Japan and Germany to become the world’s third-largest economy as soon as 2026,” says Capital Economics.
Fidelity Emerging Markets Limited (LON:FEML) is an investment trust that aims to achieve long-term capital growth from an actively managed portfolio made up primarily of securities and financial instruments providing exposure to emerging markets companies, both listed and unlisted.
