From Quartz:
If
there’s one trend you can count on without fail, it’s that emerging
markets out-grow wealthy ones—they’ve got more people, lower labor costs
and, thanks to global knowledge and capital flows, access to the
expertise and investment needed to drive up productivity to incredible
levels. The results have included China’s growth miracle (and a
commensurate plunge in extreme poverty), and the BRICS investment
craze—as well as plenty of nervous collar-pulling in the wealthy West’s
capitals.
But
is the most important economic trend of the past decade coming to an
end? The chart above shows that the catch-up growth gap between wealthy
countries and emerging markets has been shrinking in recent years. The
trend is explored this week by the Economist’s Ryan Avent, who used the latest calculations
of each country’s relative buying power from the World Bank to directly
compare emerging market economic growth to that in wealthy economies....MORE
