Trends Identified
For most, population as a source of growth will need to be replaced
Most of Europe and East Asia, by contrast, is expected to see labour-force declines, representing a severe drag on growth. Japan will see the greatest decline of over one-quarter, from 66m to 47m; China and South Korea are also expected to experience a 17-18% contraction in their labour forces.
2015
Long-term macroeconomic forecasts Key trends to 2050
The Economist
Collectively rich, individually not so rich
Emerging markets are expected to grow faster than developed economies, and as a result developing countries such as China and India are likely to overtake current global leaders such as the US, Japan and Western Europe, while other emerging markets, such as Indonesia and Mexico, will rank among the top ten economies at market exchanges rates by 2050, overtaking economies such as Italy and Russia. By contrast, in terms of income per capita, a measure of individual spending power, today’s advanced economies are likely to continue to dominate.
2015
Long-term macroeconomic forecasts Key trends to 2050
The Economist
The great rebalancing
The coming decade will be the first in 200 years when emerging-market countries contribute more growth than the developed ones. This growth will not only create a wave of new middle-class consumers but also drive profound innovations in product design, market infrastructure, and value chains.
2010
Mckinsey quarterly, Global forces: An introduction
McKinsey
The productivity imperative
Developed-world economies will need to generate pronounced gains in productivity to power continued economic growth. The most dramatic innovations in the Western world are likely to be those that accelerate economic productivity.
2010
Mckinsey quarterly, Global forces: An introduction
McKinsey
The global grid
The global economy is growing ever more connected. Complex flows of capital, goods, information, and people are creating an interlinked network that spans geographies, social groups, and economies in ways that permit large-scale interactions at any moment. This expanding grid is seeding new business models and accelerating the pace of innovation. It also makes destabilizing cycles of volatility more likely.
2010
Mckinsey quarterly, Global forces: An introduction
McKinsey
Pricing the planet
A collision is shaping up among the rising demand for resources, constrained supplies, and changing social attitudes toward environmental protection. The next decade will see an increased focus on resource productivity, the emergence of substantial clean-tech industries, and regulatory initiatives.
2010
Mckinsey quarterly, Global forces: An introduction
McKinsey
The market state
The often contradictory demands of driving economic growth and providing the necessary safety nets to maintain social stability have put governments under extraordinary pressure. Globalization applies additional heat: how will distinctly national entities govern in an increasingly globalized world?
2010
Mckinsey quarterly, Global forces: An introduction
McKinsey
Dynamism in emerging markets
Emerging markets are going through the simultaneous industrial and urban revolutions that began in the 18th century in England and in the 19th century in the rest of today’s developed world. In 2009, for the first time in more than 200 years, emerging markets contributed more to global economic growth than developed ones did. By 2025, emerging markets will have been the world’s prime growth engine for more than 15 years, China will be home to more large companies than either the United States or Europe, and more than 45 percent of the companies on Fortune’s Global 500 list of major international players will hail from emerging markets—versus just 5 percent in the year 2000.
2014
Mckinsey Quarterly, Management intuition for the next 50 years
McKinsey
Technology and connectivity
We’re accustomed to seeing Moore’s law plotted on a logarithmic scale, which makes all this doubling look smooth. But we don’t buy computers logarithmically. As power increases, prices decrease, devices proliferate, and IT penetration deepens, aggregate computing capacity surges at an eye-popping rate: we estimate the world added roughly 5 exaflops of computing capacity in 2008 (at a cost of about $800 billion), more than 20 in 2012 (to the tune of just under $1 trillion), and is headed for roughly 40 this year (Exhibit 2). These extraordinary advances in capacity, power, and speed are fueling the rise of artificial intelligence, reshaping global manufacturing,3 and turbocharging advances in connectivity. Global flows of data, finance, talent, and trade are poised to triple in the decade ahead, from levels that already represent a massive leap forward.
2014
Mckinsey Quarterly, Management intuition for the next 50 years
McKinsey
Aging populations
Simultaneously, fertility is falling and the world’s population is graying dramatically (Exhibit 3). Aging has been evident in developed economies for some time, with Japan and Russia seeing their populations decline. But the demographic deficit is now spreading to China and will then sweep across Latin America. For the first time in human history, the planet’s population could plateau in most of the world and shrink in countries such as South Korea, Italy, and Germany.
2014
Mckinsey Quarterly, Management intuition for the next 50 years
McKinsey