Emerging-market stock capitalization is set to exceed that of the United States by the end of the decade, as income grows and investors gain deeper access to public stock exchanges around the world, according to “Goldman Sachs”.
Analysts of “Goldman Sachs”, turning forecasts of economic growth into estimates of the market value of stocks, concluded that the US global share will fall from 42% in 2022 to about 35% in 2030.
It is noted that in the same period, the share of emerging markets will increase from about 27% to 35% and continue to grow from there, according to the report.
“The most important fundamental dynamic growth of the capital market in emerging markets in our forecast is the parity of corporate assets, the deepening of capital markets, and the lack of intermediation that occurs as financial development progresses,” Goldman Sachs analysts said.
However, developing economies are expected to grow at an average rate of 3.8%, more than double the expected 1.8% for developed countries, due to more favorable demographics and productivity increases over the remainder of the decade, according to “Goldman Sachs”.
