Chart of the week: The great transformation
One of the main challenges for the incoming EU leadership will be to deal with the great transformation of the global economy. How should the EU master globalisation as well as demographic, technological and environmental change?
One of the main challenges for the incoming EU leadership will be to deal with the great transformation of the global economy. How should the EU master globalisation as well as demographic, technological and environmental change? In this week’s chart of the week, we document two striking features of the changing global economy: Emerging and developing market economies continued to forge ahead in the last decade, having been relatively immune to the financial crisis. Two key facts stand out: In 2013, emerging and developing countries together accounted – for the first time since at least 1850 – for more than 50 % of global GDP; meanwhile, their average public debt-to-GDP ratio dropped below 40 percent, while it nearly reached 110 percent in the advanced economies. This leaves the emerging markets in way better shape than the advanced economies to face the challenges in the future.
In the recent policy brief ‘The great transformation‘ we discuss how the new EU leadership should deal with this challenge.
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