The rapid growth of emerging economies has led to a shift in economic power: forecasts based on analysis by late economist Angus Maddison suggest that the aggregate economic weight of developing and emerging economies is about to surpass that of the countries that currently make up the advanced world.
The Organization for Economic Cooperation and Development (OECD) reports that poorer countries now contribute 49% of world G.D.P. - an increase of 9% since 2000. Furthermore, they project that non-OECD members will make up 57% of world G.D.P. by the year 2030.
Source: OECD
There is no need for U.S. investors to drag their feet as this shift takes place. I suspect that there will continue to be tremendous investment opportunities in the United States, and other developed economies, in the coming decades. However, it makes no sense to limit one’s investments just to developed economies, which are becoming a smaller slice of the global economic pie.
