Recently, Capital Ideas shared the following information which I think you will find interesting:
By 2025, 4.2 billion people out of a global population of 7.9 billion will be part of the consuming class.
For the first time in history, the number of people with discretionary income will exceed the number of people still struggling to meet basic needs.
Here are some of the changes in consumer spending which is led by millennials:
- Chinese millennials are “all about the experience”. This includes going to the movies and increasing their travel abroad. They spend considerably on-line for lifestyle items.
- Another country positioned to benefit from the increased spending is India. In the next 10 years, about 150 million new people will enter India’s workforce. Highways, airports, and other infrastructure is expected to increase along with consumer spending.
- The 80 million American millennials spend at least $600 billion a year. They are adding to the success of businesses like Uber and HomeAway.
Consumer spending drives 70% of the U.S. gross domestic product (GDP).
We will watch for new investment possibilities based on this information.
We welcome the opportunity to share a cup of coffee and conversation with you.
Barbara A. Culver
CFP®, ChFC®, CLU, AEP®