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.

Register or login for access to this item and much more

All Financial Planning content is archived after seven days.

Community members receive:
  • All recent and archived articles
  • Conference offers and updates
  • A full menu of enewsletter options
  • Web seminars, white papers, ebooks

Don't have an account? Register for Free Unlimited Access