- "Europe is embroiled in a sovereign debt crisis, but it is just the start of a downward trend for the continent, if this GDP chart is to be believed.
- This beautiful chart from Spanish economics blog Venturatis, makes it clear that European nations are falling behind in the GDP competition, and sure to fall behind more over the next 40 years if they can't stick together and make the European Union a growth titan.
- Notably, the United States remains a massive growth market throughout the next 40 years."
As noted in our prior posts, we believe forecasts and "experts" are often innaccurate, yet at least a few valid reasons exist to support a long-term economic shift toward emerging markets:
- ongoing deregulation/liberalization,
- more stable governments,
- increased free trade and resulting stronger trading relationships,
- increased capital mobility, and
- globalization of corporations
The United States, as a major global trading partner, should benefit by providing goods and services to the emerging giants (hence, the forecast of a still prominent USA in 2014 and 2050). We think Europe will remain in the picture, too, and -- as the Spanish author notes:
- "los cambios son siempre una fuente de oportunidades"
© 2010 Jeffrey Walkenhorst
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