Europe, For One, Welcomes Its New Asian Overlords
The IMF's World Economic Outlook (WEO) provided a plethora of data, trends, and extrapolations for investors to prognosticate upon. One that caught our eye is the rising trend of the 27 Developing Asian economies as a share of World GDP. Bloomberg's Chart of the Day notes that by the end of 2012, Developing Asia will account for 17.9% of World GDP - trumping, for the first time - Europe's 17-nation 16.9% share. The euro-area crisis has merely accelerated a trend that has been ongoing for several years - and we suspect, as former IMF board member Domenico Lombardi notes, makes it clear that euro-area economies need to address their structural reforms rapidly. America should not be too complacent however, as while China will top Europe by 2017 (as a share of global GDP), USA will welcome its own overlords in five short years when Developing Asia will have topped the USA for the first time ever.