Emerging Markets Led by China, India to Spur Global Consumption
Emerging markets will replace developed economies as the main drivers of global consumption, with more than half the growth coming from China and India in five years, Boston Consulting Group Inc. said today.
Spending by Chinese consumers is expected to more than double and account for 22 percent of the global total by 2020, the consulting firm said in a report. The slice of global discretionary spending by U.S. consumers may fall to 35 percent from 40 percent now, according to the report.
“The economic downturn hurt both the willingness and the ability of many consumers in the developed economies to spend,” the report’s authors Catherine Roche, Patrick Ducasse and Carol Liao wrote.
Attitudes toward spending are more buoyant in emerging markets including Brazil, China, Indonesia, Mexico, Russia, South Africa and Turkey, reflecting consumers’ outlook on the economy.
Thirty-six percent of Chinese consumers surveyed said they plan to increase discretionary spending in the next 12 months, compared with 19 percent in India, 11 percent in the U.S. and 8 percent in Europe, according to the report.
The report was based on a survey conducted in March and April of about 24,000 consumers in 21 countries.
--Stephanie Wong and Michael Wei. Editors: Nicholas Wadhams, Suresh Seshadri.
To contact Bloomberg News staff for this story: Michael Wei in Shanghai at +86-21-6104-3044 or mwei13@bloomberg.net
To contact the editor responsible for this story: Frank Longid at flongid@bloomberg.net
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