According to Richard Dobbs, director of the McKinsey Global Institute, demand for capital in emerging markets should push up global interest rates—the only question is how much and when.
In the Mckinsey Quarterly, he and other McKinsey analysts report that by 2030, the “world’s supply of capital— that is, its willingness to save —“ won’t match the money needed to finance new roads, ports, water and power systems, schools, factories and hospitals in the world’s fastest growing economies. That gap, which is estimated at $2.4 trillion in 2030, could push up interest rates around the world. The imbalance will show up by 2020.
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