Global Themes - Current Headwinds Aside, EM Consumption Boom To Persist
Over the coming decade, we expect emerging markets to increase their proportion of global consumption from 29% to 41%. This is a substantial shift in global consumption patterns, considering that emerging markets made up a mere 7% of global consumption as recently as 2000.
In the next year or two though, emerging market consumption is likely to experience headwinds. Currency weakness will weigh on the purchasing power of households in several key countries, including Russia, Turkey, and Brazil.
While household consumption in the world's largest market, the US, has recovered to pre-crisis levels, it is still significantly below the long-term trend. For the eurozone, a recovery is nowhere in sight at this stage.
|Emerging Market Consumers To The Fore|
|Global Real Consumption Growth (%)|