Newsweek magazine on Oct 8 came out with an excellent article which highlighted what we in emerging countries are lamenting — we think that the markets are in developed countries where people have purchasing power.  But apparently, the highest growth are in emerging economies where yes, the purchasing power is not yet quite there, but is growing fast.

Newsweek highlighted that the top 100 companies from the world’s emerging economies haveare growing 10 times faster than their US counterparts, 24 times faster than Japan, and 34 times faster than Germany.

Moreover, while emerging economies currently have 85% of the population yet, have only 21% of the GDP, they estimated that these 85% of the population will soon contribute 50% of the GDP by 2035.

Some more statistics that shows whereyou are going to bet.  Developed countries have GDP of 32 trillion in 2005 which is estimated to grow to $77 trillion by 2050.  BRIC countries ( Brazil, Russia, India and china) currently have GDP of 4 trillion in 2005 but is estimated to grow th 90 trillion by 2050.  As a whole, Emerging economies with 2005 GDP of 9 trillion is estimated to be in the GDP range of $138 trillion by 2050.

In short, the GDP of emerging countries which is only a fourth of what it is to developed countries in 2005, is expected to be twice as big as that of developed countries by 2050.