3 These Countries Will Become World Economic Authorities by 2030, Who Are They?
HSBC Private Banking Research states that the world economy will be controlled by 3 countries by 2030. Interestingly, 2 countries are from the Asian Continent.
Managing Director Strategic Market Chief, Asia HSBC Private Banking, Fan Cheuk Wan explained, in 2030, India will become the third economic power in the world. While the first position will be controlled by China.
That way, developing countries or emerging markets in Asia will contribute 55 percent of world economic growth and 35 percent of world GDP. Therefore, he explained, the strength of Asian consumers will have a big impact on the global market.
“Asia’s large middle class population will bring many opportunities for the personal service sector, premium retail products, e-Commerce, entertainment, travel, education, health, and finance,” he said as written Saturday (6/22/2019).
Fan continued, China or China will replace the United States (US) as the largest economic power in the world.
Therefore, the three largest economies in the world in 2030 will be occupied by China in the first position, the United States in the second position and then followed by India.
“We know that this year China is trying to replace the US as the largest retail market in the world. This is thanks to the fairly fast e-commerce market,” he said.
“Although the productive age population is starting to decline in China, South Korea, Singapore and Thailand, Asian consumers are actually entering the age of peak consumption with quite high annual spending,” he added.
Like the World Bank, HSBC also estimates that the world economy will slow down
Previously, HSBC Private Banking estimated that world economic growth would slow down a bit this year and next. HSBC estimates that Global GDP will be in the range of 2.4 percent in 2019 and 2020.
This figure can be achieved with the condition that the United States (US) and China are able to maintain a viable economic growth, namely 2.4 percent and 6.6 percent respectively in 2019.
Managing Director Chief Market, Strategic Asia HSBC Private Banking Cheuk Wan Fan said, in the second half of 2019, the stock market in the US and Asia became more attractive. The stock market growth in Asia will be driven by China, Indonesia, India and Singapore.
“Our preference for US and Asian equities is supported by diverse economic growth prospects. We prefer US and Asian credit based on assessment,” he said in Jakarta, Thursday (6/20/2019).
For investors, Fan recommends avoiding excessive concentration through global diversification and active management.
“Investors can also consider portfolio risk management through the allocation of gold and other alternative investments. As well as the placement of a diversified multi-asset portfolio,” he said.