The Spending Boom By Nations: Who Will be the Next Big Spenders of the World… and When

In developing countries, consumer spending tends to be more even across age groups. These countries have greater disruption in their economies and people enter the productive workforce at any age, instead of their early 20s. To account for this difference, we measure all those of working age (15-64) rather than the narrower age cohort (45-49) for developed countries.

The Power of Demographics

As each generation ages, its members spend money in predictable ways. Considering that personal consumption makes up 70% of GDP in most developed countries, knowing when spending will peak can become a valuable tool in any investing arsenal, enabling you to see booms and busts coming before anyone else.

The predictable spending cycle looks as follows…

Generally speaking, a young person will enter the workforce at around age 20 (depending on education).

They’ll get married at age 26.

And have their first child at age 28.

They’ll buy their first home at around age 31 and trade-up to a bigger home between ages 37 and 42.

They’ll finally peak in their spending around age 45 to 49.

2010
2010
Growth
Decline
Peak
No Data

Map Indicates Spending Wave (ages 45-49); Developed Countries:

Australia, Austria, Belgium, Canada, Denmark, Finland, France, Germany, Greece, Iceland, Ireland, Israel, Italy, Japan, Luxembourg, Netherlands, New Zealand, Norway, Portugal, Puerto Rico, Korea, Slovenia, Spain, Sweden, Switzerland, United Kingdom, United States of America

Map Indicates Workforce (ages 15-64); Developing Countries

Afghanistan, Angola, Argentina, Armenia, Azerbaijan, Bahamas, Bangladesh, Benin, Bhutan, Bolivia, Bosnia and Herzegovina,Botswana, Brazil, Brunei Darussalam, Bulgaria, Burkina Faso, Burundi, Cameroon, Central African Republic, Chad, Chile, China, Colombia, Costa Rica, Côte d'Ivoire, Cuba, Cyprus, Czech Republic, Dem, People's Republic of Korea, Djibouti, Dominican Republic, Ecuador, Egypt, El Salvador, Eritrea, Ethiopia, Fiji, French Guiana, Gambia, Georgia, Guatemala, Guinea, Guinea-Bissau, Guyana, Haiti, Honduras, Hungary, India, Indonesia, Iran (Islamic Republic of), Iraq, Jamaica, Jordan, Kazakhstan, Kenya, Kyrgyzstan, Lao People's Democratic Republic, Latvia, Lebanon, Lesotho, Liberia, Libya, Lithuania, Madagascar, Malawi, Malaysia, Mali, Mauritania, Mexico, Mongolia, Montenegro, Morocco, Mozambique, Myanmar, Namibia, Nepal, New Caledonia, Nicaragua, Niger, Nigeria, Oman, Pakistan, Panama, Papua New Guinea, Paraguay, Peru, Philippines, Poland, Qatar, Republic of Moldova, Romania, Russian Federation, Rwanda, Saudi Arabia, Senegal, Sierra Leone, Singapore, Slovakia, Solomon Islands, Somalia, South Africa, South Sudan, Sri Lanka, Sudan, Suriname, Syrian Arab Republic, Tajikistan, TFYR Macedonia, Thailand, Timor-Leste, Togo, Trinidad and Tobago, Tunisia, Turkey, Turkmenistan, Uganda, Ukraine, United Republic of Tanzania, United States Virgin Islands, Uruguay, Uzbekistan, Vanuatu, Venezuela (Bolivarian Republic of), Viet Nam, Yemen, Zimbabwe