New Global Economic Order After 2020

Whole word is eager to know about who will the global leader in term of economy after 2020? Will United States of America would be in position to continue as global economic powerhouse or not? If America is going to lose the reign of leadership then who will be the next leader? There are several questions is running all over the world. Different people have different opinion which are based upon several and different logics and conclusions. But at point all are agree and that is – axis of prosperity, development has been shifted from west to east. Days are gone when very fewer western countries decide the fate of global economic policies. One think tank, predicts that till 2020, emerging markets will dominate the economies. The most discernible shift in global power towards emerging market economies is expected to take place in 2017 when China will become the world’s largest economy. In his reports very clearly said that Emerging economies are driving global economic growth but advanced economies will retain a competitive advantage with higher per capita incomes and greater consumer market expenditure, while governments in developing countries face challenges in keeping up with the pace of economic growth. The three biggest emerging economies will account for around 30.0% of global GDP in PPP terms in 2020 compared to 23.5% in 2012 when there were just two emerging markets amongst the five largest economies –1. USA 2. China 3. India 4. Japan 5. Germany. The global economic downturn of 2008-2009 and the ensuing sovereign debt crisis have accelerated this trend as advanced economies were hit much harder through greater integration in global financial markets and larger fiscal imbalances and government debt. The consequential austerity drive across much of the developed world, especially in the euro zone, has resulted in low-growth, high-debt scenarios, long-term unemployment and underemployment. Economic growth in emerging and developing countries also slowed but the effects of the global downturn were not as acute and in 2013, emerging markets will overtake developed countries in their share of the global economy in PPP terms for the first time forecast is 51.0% of world GDP. One of the interesting figure is that among all those predictions and future saying is that It is china who is going to be global leader but due to big population weight, its per capita income will not match to the the number 2 economy that is America. The average value of Chinese per capita income would be 1/4th of USA’s per capita income. So may be over all GDP of China will cross the America’s GDP but per capita income will be lower than America’s per capita income.