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The Impact of Emerging Markets on Consumer Demand

Countries in emerging markets like China have been a major component of global economic growth rates over the last 10-15 years.  China alone grew it’s GDP a staggering 10% per year during the period 2000-2010.  Recent reports show that growth is slowing and the current global markets are seeing a “Correction” in large parts due to the uncertainty of the China economy.  Today it stands at 7.5% and is expected to shrink further to 6.5% from 2018-2022.  There are other examples, but clearly companies must consider projected regional and country growth rates carefully before determining where and how to invest. Slowing and / or slow growth contributes to uncertain consumer demand which persists in global economy.  A recent McKinsey survey showed that 48% of executives surveyed consider low consumer demand the top risk to economic growth and, that where there is growth opportunity, 32% reported that growth in emerging markets – more than any other factor, including economic recovery in developed markets – will be what drives global economic growth over the next 10 years. A recent McKinsey Survey on economic uncertainty speaks largely to this topic:

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