The New Titans

The Economist reports:

The developing countries also have a far greater influence on the performance of the rich economies than is generally realised. Emerging economies are driving global growth and having a big impact on developed countries' inflation, interest rates, wages and profits. As these newcomers become more integrated into the global economy and their incomes catch up with the rich countries, they will provide the biggest boost to the world economy since the industrial revolution...Rising exports give developing countries more money to spend on imports from richer ones. And although their average incomes are still low, their middle classes are expanding fast, creating a vast new market. Over the next decade, almost a billion new consumers will enter the global marketplace as household incomes rise above the threshold at which people generally begin to spend on non-essential goods. Emerging economies have already become important markets for rich-world firms: over half of the combined exports of America, the euro area and Japan go to these poorer economies. The rich economies' trade with developing countries is growing twice as fast as their trade with one another.