High Emerging Market savings rates will have global impact for decades

Demographic trends imply emerging market savings rates are approaching multi-decade peaks and will only fall marginally over the next few decades.

In this report, we analysed the effect of four key trends to assess the impact of emerging markets on global savings rates and therefore global real interest rates.

These trends are:

• savings rates by age cohorts in different countries;
• EM population dynamics;
• increasing life expectancy;
• the growing influence of EMs in the global economy.

The global impact of EMs will rise in a steady crescendo, as the contribution of EMs to global GDP rises to 50% by 2050 from 41% in 2025 and 24% in 2000.

High EM savings rates will, other things equal, constrain upward pressures on global real interest rates.

Continued high EM savings rates will have a transformative impact on EMs by supporting financial market development, strengthening balance of payments, and boosting financial stability.

Download our report to learn more.