When looking at different regions of the world and comparing their GDP rates of the past five years and examining the current rates, it is easy to get a good picture of the direction of future global economy. China, is at the top of the list, experiencing GDP growth at a rate averaging between 5 to 10 percent with forecasts expecting the trend to continue for the next decade. On the other end of the scale sits the United States and most parts of western Europe, who have had little GDP growth overall since 2008 and is just now hovering around the 1 to 2 percent range. Analysts expect the western nation’s GDP growth rate to come nowhere near 3 to 5 percent before the year 2020.
Over the course of these past years, a large number of countries and regions around the world have been experiencing excellent growth in their GDP numbers. Many are now emerging to become major contributors to the global economy of the future as their nations continue to prosper in the coming years, expecting to achieve an average of 5 percent growth collectively. In other words, there is a new order starting to shape the global economy and it’s mainly driven by the new emerging consumer markets, such as China, India, Russia, Brazil and Africa. The western nations will have a difficult time competing in the future if they don’t hurry up and restructure and rebuild their broken economies.
One nation of the world that has been quite busy building their economy has been the UAE. A number of years ago their leaders put in place a vision to build a new diverse economy by increasing their domestic manufacturing levels and making huge investments into ports and infrastructure, to build a solid foundation for their economic future. So far it seems to be working very well, as their recent GDP numbers show. The UAE’s GDP grew 4.4 percent in 2012, the highest rate since 2006. The country did indeed suffer as a result of the western financial crisis but they are now back on track with their massive building plans for their future, looking to invest $90 billion on more development projects in the next few years. There are even plans for Dubai to build an entire new city that would feature 100 hotels and the world’s largest shopping mall.
The UAE expects their GDP growth to remain steady around 4 to 5 percent for the foreseeable future as they continue to put their economic plans into action. Sometimes it’s nice to have all the money that the UAE has at it’s disposal, particularly if you are a country looking to grow and maintain economic growth. What the UAE is proving to the rest of the world is that it is not a carefully guarded investment secret or how much money you have, but rather how you invest it. They have spent their money wisely by investing in building a strong foundation for their domestic economic growth. It has paid off in the short term for them and will no doubt pay giant dividends for the country in the future.