India, China investors giants among developing nations

Washington, May 17:

and

are expected to be the largest investors among developing countries by 2030, with the two Asian giants accounting for 38 per cent of global gross

, a World Bank report said today.

"Among the developing countries, China and India are expected to be the largest investors, with the two countries together accounting for 38 per cent of the global gross investment in 2030. All this will change the landscape of the global economy, and GDH analyzes how," said Kaushik Basu, World Bank's Senior Vice President and Chief Economist.

According to the latest edition of the World Bank's Global Development Horizons (GDH) report, by 2030 half the global stock of capital, totaling USD 158 trillion, will reside in the developing world, compared to less than one-third today, with countries in East Asia and Latin America accounting for the largest shares of this stock.

Developing countries' share in global investment is projected to triple by 2030 to three-fifths, from one-fifth in 2000, says the report, titled 'Capital for the Future: Saving and Investment in an Interdependent World'. With world population set to rise from 7 billion in 2010 to 8.5 billion 2030 and rapid aging in the advanced countries, demographic changes will profoundly influence these structural shifts, it said.

"GDH is one of the finest efforts at peering into the distant future. It does this by marshaling an amazing amount of statistical information," Basu said. "We know from the experience of countries as diverse as South Korea, Indonesia, Brazil, Turkey and South Africa the pivotal role investment plays in driving long-term growth," he added.

PTI