One of the most significant effects of the recent economic crisis has been the reduced role of Western consumers as drivers of growth in global consumption.
Today, U.S. consumption makes up 17 percent of global GDP, and since 2000, consumers have accounted for 74 percent, or $3.5 trillion, of U.S. GDP growth. By 2020, U.S. consumers are expected to account for 35 percent of global discretionary spending, compared with 40 percent today, and China will account for 22 percent, up from just 9 percent today. The economic downturn hurt both the willingness and the ability of many consumers in the developed economies to spend. This stands in strong contrast to the emerging markets, where attitudes toward spending are much more buoyant, reflecting consumers’ outlook on the economy.
Developed markets will continue to play a significant role in the world economy because of their absolute size. But over the next few…
View original post 1,284 more words