Trade and investments – 5 predictions for the next decade – part 2.

4. Europe will have similar problems to Japan in terms of declining and aging populations. As individual economies keep up the struggle worldwide, politicians will need to do something about the high unemployment levels. Europe is expected to experience demographic issues and structural economic problems, which are similar to the troubles that Japan’s economy has been experiencing since the beginning of the 1990’s. As was seen in Japan, the declining labor force is likely to do some damage in Europe, as the population of the continent gets older and birth rates decline.

5. There will be a significant increase in emerging markets weighting in global indices. In the decades to follow, the U.S. is expected to stay a global leader in the economic power aspect, but will not remain the unquestioned king. The increase in private consumption in emerging markets is higher than private consumption in developed markets. In the future, domestic demand in emerging markets is expected to become a growth driver.

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The information supplied in this article is not to be considered as medical advice and is for educational purposes only.