Developing nation's share of global investment to rise by 2030

Money

Hohoe (V/R), May 19 GNA - Seventeen years from now, half the global stock of capital, totalling 8 trillion will reside in the developing world, compared to less than the current one-third.

Countries in East Asia and Latin America will account for the largest shares of the stock, says the latest edition of the World Bank's Global Development Horizons (GDH) report, made available to Ghana News Agency.

The report explores patterns of investment, saving and capital flows as they

are likely to evolve over the next two decades.
It said developing countries share in global investment is projected to triple by 2030 to three-fifths, from one-fifth in 2000, says the report, titled 'Capital for the Future: Saving and Investment in an Interdependent World'.

With world population set to rise from seven billion in 2010 to 8.5

billion 2030 and rapid aging in the advanced countries, demographic changes will profoundly influence these structural shifts.

"GDH is one of the finest efforts at peering into the distant future. It does this by marshalling an amazing amount of statistical information," said Kaushik Basu, the World Bank's Senior Vice President and Chief Economist.

"We know from the experience of countries as diverse as South Korea, Indonesia, Brazil, Turkey and South Africa the pivotal role investment plays in driving long-term growth. In less than a generation, global investment will be dominated by the developing countries.'

Mr Basu said 'among the developing countries, China and India are expected to be the largest investors, with the two countries accounting for 38 per cent of the global gross investment in 2030.

'All this will change the landscape of the global economy,' he said.

 
 
GNA