Boosting the economic growth and corporate profits in the developed world is what’s expected to happen by 2020 in China and India. How you ask? Well, the consumer spending in those two countries are expected to triple to $10 trillion a year combined. The prediction is that China and India will spend a total of $64 trillion on goods and services in the decade leading up to 2020. Investors have been wary about China and India in the past few quarters due to slow economic growth and political risks, but the middle class in the two countries is expected to reach 1 billion by 2020 and the size of middle class population is to raise an additional 17% since 2010. As per these predictions, the future spending habits of the middle class will help the economy, proving that India and China won’t let their investors down. Accelerating middle class growth is fueling consumer spending and economic development.
Written by Melissa W.