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As developed countries faced higher energy costs, rising interest rates, and shifting economic landscape, China and the other six countries in E7, which stands for “Emerging 7” due to their major emerging economies, including Brazil, India, Indonesia, Mexico, Russia, and Turkey, will become more intriguing markets. Here is global economic foresight for these countries, which will explain why they are attractive in the eyes of international investors.
CHINA: A GLOBAL ECONOMIC SUPERPOWER
Although major international investment banks predict that China’s economy will grow at a slower pace in 2024 than in 2023, UBS analysts stated that there’s still growth potential in China as there is further movement of workers from rural to urban areas, as well as investment in manufacturing, services, and renewable energy. “China’s contribution to global growth will be more than three times greater than the United States,” Reuters reported. Furthermore, China’s GDP is expected to rise by 4.5 percent in 2024 driven by domestic consumption and investment, outpacing the growth rates of other major nations, according to a World Bank estimate. For instance, growth in the advanced economies collectively is predicted to reach 1.2 percent in 2024, while the US economy is predicted to increase by 1.6 percent. Having said that, China is anticipated to continue being a major driver of global expansion.
OTHER EMERGING MARKETS AS GROWTH DRIVERS
Other E7 countries are equally important. According to the New Development Bank, these nations will have a more significant share of the global GDP pie as their GDP is 20% bigger than that of the G7 (a collection of developed countries). The NDB also predicts that in 2050, six of the now-emerging countries will become the largest economies in the world. With this said, more trade and investment in emerging markets is the way for the recovery to be sustainable over time. . Businesses will be impacted under any circumstances by relative factors in the global arena and comparative context in a world where demand and growth are interconnected. Resilience is becoming one of the keys to success because of the instability caused by the shift in the global economy. Due to the uncertainties developed nations are experiencing, China and other emerging markets will likely wind up being the new global growth drivers.
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