Bloomberg News
October 18, 2012
By Simon Kennedy
A global consumer revolution is set
to take off amid an unprecedented expansion of the middle class.
That’s the forecast of Karen Ward and Frederic Neumann,
economists at HSBC Holdings Plc. Their analysis is based on the
estimate that almost 3 billion people, or more than 40 percent
of today’s population, will join the world’s middle class by
2050 -- defined as earning between $3,000 and $15,000 a year.
The majority will be in emerging markets, meaning such
economies could make up almost two thirds of worldwide household
spending compared with about one-third today, said Ward and
Neumann. China, India and Russia are all set to enjoy average
gains in real incomes of about 4 percent up to 2050, they said.
Demographics also benefit many emerging markets, given that
individuals tend to consume the most between the ages of 16 and
40, they said. Although China’s median age of 35 is not far off
the 39 for the U.S. and Europe, the Philippines’ comparable age
is 23 and India’s 26.
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