Emerging markets to redefine global economy by 2025: WB
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Six major emerging economies of Indonesia, Brazil, China, India, South Korea and Russia will account for more than half of all global growth by 2025, a World Bank's official said here on Wednesday.
Mansoor Dailami, manager of emerging trend at the World Bank, said that these emerging economies will grow on average by 4.7 percent a year between 2011 and 2025.
"On the other hand, advanced economies are forecast to grow by only 2.3 percent over the same period, but will remain prominent in global economy," said Dailami in a seminar here.
He said that the projected changes in the global economy are likely to be positive for developing countries.
"However, a key question is whether existing multilateral norms and institutions can accommodate the passage toward multi polarity, " he said.
He said that in managing global integration, strengthening policy coordination across power centers becomes critical to reducing the risks of economic instability.
Justin Yifu Lin, the World Bank's chief economist and senior vice president for Development Economies, said that with the rapid rise of emerging economies, the centers of economic growth are now spread out across developed and developing countries.
"Emerging multinationals are becoming force in reshaping global industry, so too are South-South investment and foreign direct investment. International financial institutions need to adapt fast to keep up," Lin said in a statement.
Report titled 'Global Development Horizon 2011-Multipolarity: the New Global Economy' released by the World Bank on May 17 said that with a growing middle class in developing countries, consumption trends are likely to strengthen and eventually become a source of sustained global growth.
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