The US economy is currently the largest in the world, estimated by organizations such as Peterson Institute for International Economics, to be $14.6 trillion. This month the Chinese economy overtook the Japanese economy to be the world’s number two, which is estimated to be some $5.7 trillion. However based on the current rate of expansion the Chinese manufacturing base, the Chinese economy should surpass the US economy in only a matter of years. PriceWaterhouseCoopers (PWC) published a report entitled "The World in 2050", which predicts that the Chinese economy will overtake the US in 2025 and will be 130 percent the size of the US market by 2050. The report also goes on to predict that the Indian economy, which currently eleventh largest, would be the world’s third largest economy in 2050, perhaps only ten percent smaller than the US.
There are a number of other economies that are currently emerging and depending on their attractiveness to foreign investment and manufacturing prowess; any of these could change the overall landscape of world economies. The logistics research company, Transport Intelligence, highlighted a number of countries that are emerging logistics markets in 2011 and could become leading economies in the next decade.
- 10. Malaysia
Malaysia has become a force in the south Asian market by attracting major automotive companies such as VW and Mercedes to build assemble plants. Other foreign investment has been forthcoming from electronics, solar-related and oil and gas industries. This has pushed the logistics market to grow at an estimated 12.5 percent for next five years.
- 9. Saudi Arabia
Obviously Saudi Arabia is known as the leading oil exporter but surprisingly this kingdom has suffered over the last few years with the global slowdown. It has the ability to invest heavily in logistics and has built a number of transportation hubs across the country. When the growth in the global economy does return, the Saudi’s are in a good position to benefit with the investment in their infrastructure.
- 8. Egypt
Before the recent political turmoil in Egypt, this country was well positioned to be a logistics center in the middle-east. There were plans for a number of industrial zones and development in the new industrial cities. Unfortunately with a change in political direction this could all be undermined and Egypt’s predicted growth fail to come to fruition.
- 7. United Arab Emirates
As with Saudi Arabia this federation of seven states has benefited from significant oil exports, but unlike the Saudi’s some of these small nations have spent their new wealth in significant infrastructure. When the global downturn occurred some of the nations, such as Dubai, found them economically stretched, but based on the investment already made, Dubai, Abu Dhabi and Sharjah are in a excellent position to grow when the economy improves.
- 6. Turkey
Turkey has a unique geographical and political location which could produce significant growth in the coming years. The country lies between the western nations of Europe and the growing Arab states and politically it is very similar, with an Islamic population that benefits from a western style government. If the political situation remains calm in Turkey this nation could grow significantly as it grows closer to the European Union.
- 5. Russia
Russia is country of vast natural resources and could exploit these further to invest in infrastructure. Since the country’s initiation of foreign investment the economic growth has increased and will increase further when the current recession ends.
- 4. Mexico
Mexico is another country which could grow significantly over the next few years. Its physical closeness to the US has some companies looking to invest in Mexico as Chinese costs rapidly increase. Industry in the country is growing but its internal problems are still keeping US and European countries from committing to the nation. Despite the problems Mexico’s air, rail and road freight businesses are expected to rapidly grow in 2011 and beyond.
- 3. Indonesia
Indonesia has benefited from a relaxation on foreign investment and this could spark significant growth in the country. Previously the government has limited foreign investment in telecommunications, logistics and healthcare, which dramatically stifled economic growth. As China becomes less appealing to foreign investment, countries such as Indonesia, Thailand and Vietnam could benefit and see rapid expansion in the coming years.
- 2. Brazil
Brazil has benefited from savvy government involvement, such as tax incentives and infrastructure investment. The nation is the eight largest economy in the world and has significant natural resources. Brazil is a major exporter of textiles, aircraft, coffee, orange juice and soybean. The country has over 2500 airports, over 114,000 miles of paved roads as well as 36 deep-water ports. With a population of over 190 million, the internal as well as external market could give Brazil a major economic boost when the recession is over.
- 1. India
The Indian economy is booming even during a global recession. It has a uniqueness that has benefited the nation due to its colonial history. As English is the language of the Indian government, foreign investors have found that doing business in India is easier than other nations. This ease of doing business, combined with a highly educated workforce, has led the world’s top companies making India their second home. However despite these benefits and significant government investment in urban infrastructure, the nation still has kept foreign investment out of industries such as retailing, where global powerhouses like Wal-Mart and Tesco are eager to get a foothold. If the Indian government relaxes its policies then the country could see increased investment and growth.
