Wednesday, August 18, 2010

The Case for Emerging Markets

Fascinating chart over at The Big Picture showing the history of GDP. Below is my version showing GDP per capita for an assortment of countries going back 100 years.

What does this show?

Well, just playing catch up, China and Brazil can each grow 500% before they catch the United States (i.e. before current technological limitations impede growth) in GDP per capita terms while India has 1000% growth before catching up.

While catching up is not inevitable (just ask Japan), outsized growth over the next 20, 30, 50, 100 years likely is.

Source: GGDC