Developing Asian nations, including China and India, are passing the euro area as a share of the global economy, according to International Monetary Fund data.
The CHART OF THE DAY shows that Asia’s 27 developing countries account for 17.9 percent of world gross domestic product this year, compared with 16.9 percent for the 17-nation euro area. Ten years ago the European group made up 20.8 percent of the total and the Asian countries 8 percent.
“This reflects a trend that has been around for several years, and the euro-area crisis has just accelerated it,” Domenico Lombardi, a former IMF executive board member and now a senior fellow at the Brookings Institution in Washington, said in an interview. “It really highlights the need for euro-area economies to move forward on an ambitious agenda of structural reforms.”
Lombardi was speaking from Tokyo, where the IMF’s 188 member nations are meeting this week as low growth in the richest economies hurts developing countries from China to Brazil. The IMF cut global forecasts in its Oct. 9 World Economic Outlook and warned of even slower expansion unless officials in the U.S. and Europe address threats to their economies.
Developing Asia’s share of world GDP will reach 22.2 percent in 2017, according to the IMF report. China alone will have 14.3 percent, almost matching the entire euro area.
The seven so-called major advanced economies, which include the U.S., Germany and Japan, account for 47.4 percent of global output this year and are projected to fall to 43.5 percent in 2017. In 2002, the seven countries accounted for 64.9 percent.
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