Tuesday, July 5, 2011

U.S. to Lose 2nd Place in World Trade, June 23 2011

Patrick AllenCNBC
In less than 40 years India will overtake the US as the world’s second-largest trading nation, pushing today’s superpower into third place and Europe in to the little leagues, according to a new report by Citi.

“According to our projections, world trade in goods and services will grow from $37 trillion in 2010 to $149 trillion in 2030 and $371 trillion in 2050,” Citigroup’s William Buiter and Ebrahim Rahbari wrote in a research note released on Thursday.

“But at least as interesting as the growth in world trade that we forecast are the changes in its composition that we expect over the course of the next four decades, with today’s emerging markets set to gain much more prominence in world trade relative to advanced economies,” they added.

The report predicts that trade between emerging markets will overtake that between advanced economies in just four years in a clear sign that the world’s major economies of Europe and North America are set to lose relative importance to the global economy.

Full story here.

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