China and India are poised to become the largest investors among developing countries by 2030, according to a new report published by the World Bank on Thursday.
The two countries combined may represent 38 percent of the global investment in 2030 and will account for almost half of all global manufacturing investment, the report titled 'Global Development Horizons' (GDH) said.
The GDH studies patterns of investment, saving and capital flows as they are likely to evolve over the next two decades.
Asia and the Middle East will continue to dominate global saving. In 2030, China will save far more than any other developing country with $9 trillion in 2010 dollars. India will be a distant second with savings of $1.7 trillion, the report said.
Also, developing world's share of global investment is expected to triple by 2030. In additional, the report predicts half the global stock of capital to reside in the developing world by 2030, compared to less than one-third today.
"Productivity catch-up, increasing integration into global markets, sound macroeconomic policies, and improved education and health are helping speed growth and create massive investment opportunities, which, in turn, are spurring a shift in global economic weight to developing countries," the report said.
It also noted that a further boost to the shift in saving and investment will be provided by the youth bulge. By 2020, growth in world's working-age population will be exclusively determined by developing countries, the report added.
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