The future may or may not be Asian, but the latest economic data suggests that the future consumer will be. While short-term global economic growth projections have been tempered by most economists and financial institutions, the downgrades have not been as much as popular sentiment would suggest. Significantly, faster growth is expected in the medium to long term in Asia’s emerging markets. In their recent paper, World Bank economist Wolfgang Fengler, Homi Kharas of Brookings, and Juan Caballero from the World Data Lab (WDL) iterate that in October of 2021, WDL projected the world would add 132 million new entrants to the consumer class (defined as everyone spending $12 per day in 2017 purchasing power parity terms) in 2022. While this is a downward revision of previous WDL forecasts amounting to a projected loss of 22 million new global entrants to the consumer class in 2022 including about 12 million consumers from Ukraine and 5 million from Russia due to the conflict, and another 3 million consumers from China because of its zero- Covid policy, Asia sans China is the outlier. (Read More)
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