New countries with strong economies can replace old ones.
It is believed that countries with strong economies are the United States, China and other superpowers, as well as Germany and Japan. However, it is not clear that until 2030 other states will emerge as leaders. Financial experts point out that Mexico and Indonesia have the highest chances.
What happens in countries with strong economies?
Of course, the economy of the United States of America remains Key in the world.
China in recent years is rapidly catching up with the United States and even bypassed the country in terms of purchasing power. Nevertheless, the majority of the population of China are representatives of the poor class.
The main advantage of the States over China is a change in the vector of economic development from production to the provision of services. Thus, America is no longer so dependent on exports.
Meanwhile, China has enough problems. First, he needs to reform the banking system, which is mired in loans. Secondly, to change the paradigm of the society, tied to consumers and move from creating infrastructure for investment in the field of service provision.
If this does not happen, then after 10 years China risks repeating the path of Japan, which now, despite its power, suffers from demographic problems (aging population) and is stalled in development.
However, rely on the fact that China will surrender their positions, it is not necessary. Both he and the United States will remain key countries with strong economies. But the states following them – Japan, India, Germany – can give way to other developing powers.
Who is on the leaders’ heels?
The third in the list of countries with the most developed economies of the world is India, although it is more than twice inferior to both China and the United States. The soil for the development of India is the relative youth of the country and the fact that it does not have a public debt. This, in turn, leaves room for fiscal policy and growth. On the other hand, the World Bank group gives it only 130th place in the Doing Business ranking, and here the government needs to work.
Germany’s problems are on a different plane. The country’s economy is not developing fast enough to outpace the countries that are catching up with it. Among them are Brazil, Russia and, in particular, Mexico and Indonesia. The young population of the latter and the advantageous geographical position between China and India on the one hand, and Australia on the other hand allows it to benefit from all trade routes.
Mexico, as of the beginning of 2019, is on the 11th place in the list of countries with a strong economy. The proximity of the state to the United States plays into its hands, and the slowdown in the development of the economy of Russia, Brazil and other competitors opens its way to the top of the ranking.
