The Combined Wealth of the Developing Nations Cross that of the Developed Nations for the First Time
0 0 0
Share
Article

The Combined Wealth of the Developing Nations Cross that of the Developed Nations for the First Time

The Combined Wealth of the Developing Nations Cross that of the Developed Nations for the First Time
  Emerging economies or developing nations are now worth a total of $44.4 trillion adjusted for purchasing power, as against $42.8 trillion in the case of developed economies – the first time ever.  However, the developed nations are in the lead when it comes to per capita income. However, this has formed a precedent of different proportions as the developing economies of the world have emerged stronger than that of the developed countries as they continue to thrive despite the inflation and currency devaluation, while the richer economies have been caught with a slow-paced growth.  These figures - compiled by the International Monetary Fund and published by Quartz- are calculated on the premises of purchasing-power parity (PPP), wherein the poorer countries have cheaper goods and services. The rich economies of the world are the U.S., Western Europe, Japan, Canada, Australia, New Zealand plus the four 'Asian Tigers' - South Korea, Taiwan, Hong Kong and Singapore.   These countries only make up 20% of the total world population whereas a majority of population is concentrated in one of the remaining countries.  However, as suggested by the IMF data, the rich economies would continue to suffer due to the effect of worldwide inflation. The developed economies went through an acute phase of recession post 2008 and since the financial market crash, they are recovering at a sluggish pace.  On the other hand, the emerging economies have not been impacted by the recession of 2008 seriously.  In fact, if you omit the U.S and China- then it can clearly be found that emerging economies showed growth in 2009, while the richer countries were in the grip of recession. This growth registered by the developing countries would  be strong despite the economic blunders by China and the gap would inevitably widen over the coming few years. However, the developed economies are still stable and strong when it comes to GDP per person.  Developed economies have a GDP of $41,369 per capita, compared to just $7,415 for emerging economies, adjusted for PPP.
Share With The World
0 0 0

Facebook Conversation