The global economic balance of power is shifting. The East and Southern countries are growing and are getting more economic power than ever before. In 2015, the GDP of BRIC, Mexico, Turkey and Indonesia will have surpassed the GDP of West countries including Japan with twice as much.Africa is also experiencing a huge economic growth with their amount of resources and people living there.

There are numerous of reasons for East becoming the top of economics. One of the most apparent reason for this is the cheap labour in those developing countries. It is cheap to produce products and the workers don’t get paid much. Therefore, most of the products in the West are imported from those countries, especially China and India. This causes companies to move to those countries because of the cheap labour. That’s one reason why the global economy will shift due to all big companies settling in the East which give more economy involvement from those countries.

Another reason is due to the middle class expanding in East and Southern countries. This reduce poverty which then will lead to more people getting education. A greater educational attainment and health care are improving those countries which reduce the gap between Western and Eastern countries making those countries more involved in the world’s economy. As education will thrive and the gender gap decreases, it will result in countries boosting their productivity significantly.

Are there implications of Eastern/Southern countries taking over the global economy? The answer is yes, of course there are.

Developing countries will have an increase in both influence and economy activity. New markets, competitor and demand will change the patterns of trade. It will also change where goods will be transported and from where. As the developing countries increases their influence, it will bring sweeping cultural changes to the global business and economic landscape.

More than half of the global economy will be in Asia’s hands. It is difficult to predict how they will play their cards holding this power. The countries in the East hold the majority of the world’s nuclear weapons. This play a large role for the future as US and the West will dominate the economic power. Is Asia going to cooperate and further improving the world or is the future marked by conflict and suffering? Unpredictable leadership can employ bellicose language and it will also contribute to regional instability.

Conclusively, what the megatrend is predicting is the truth and is occurring in the world right now. The East and Southern part of the world is gonna dominate the global economy due to their cheap labour and companies moving to those developing countries. The middle class is also expanding in those countries leading to a wealthy country. Consequences of this exists. New markets, competitors and demand will change the patterns of trade and predicting how Asia will play their cards with this kind of power is hard to tell.