Next Gen Economies Megatrend

E7 economies (China ,India, Brazil, Russia, Indonesia, Mexico, Turkey) are projected to be twice as big as the current G7 (US, Japan, Germany, UK, France, Italy, Canada), with China and India accounting for close to 40% of global output. China’s Belt and Road initiative, the massive multi-trillion dollars project, is a major step in the rise of Emerging Markets led by the Chinese economic dominance that will impact more than 140 countries across three continents.

By becoming more influential, those regions will be more attractive for talent and businesses accelerating their growth. Both will take advantage of a younger population and greater development activity to outweigh current economic forces. Next Gen Economies will have to balance fast-paced growth with their ability to provide security and stable politics.

Smaller yet influential regional players will arise like Colombia, Nigeria, Turkey and Indonesia, sustaining the concept of a multipolar world. With the arrival of small regional forces, the strategic relevance of trade routes will favour collaborations of larger scale. Increasing interconnectivity between Emerging Markets will be a decisive growth factor.

The United States is the only country expected to remain among the global economic titans. In the meantime, mature markets will continue their slow decline against the rise of other economies and see a decrease in exports as emerging markets' dependence will fade. By 2050, Europe’s share of global GDP will fall by 40%.

With more influential players, global structures will have to adapt and include emerging powers in the decision making. A wider distribution of power will generate more challenges that may become more complicated to resolve in global stage summits. It is not farfetched to say that conflicts may become more frequent with growing geopolitical greed and nations drive to tilt the balance of powers in their favour.