Middle class people to dominate global population by 2045

Jakarta (Indonesia Window) – As many as 84 percent of the world’s population, which is estimated to reach 9.45 billion people by 2045, are middle class people, according to Indonesian Minister of Trade Muhammad Lutfi in a webinar entitled ‘Empowering SMEs (small-and-medium scale entrepreneurs) to Recover Stronger’ here on Friday (March 11).

This middle class, which is expected reach 8.1 billion people by 2045, will have high consumption, bringing benefits to Micro, Small and Medium Enterprises (MSMEs).

According to the trade minister, the increase in the number of the middle class people would grow MSMEs and boost the Indonesian economy by more than five percent per year.

Lutfi estimated that by 2045 the number of people in the world would grow from 7.7 billion to 9.45 billion people, with the majority of them being elderly and 60 percent living in urban areas.

As 90 percent of urbanization would occur in emerging markets such as Indonesia, the government decided to move the country’s capital city from Jakarta to Penajam Paser Utara district in East Kalimantan province to reduce congestion in Greater Jakarta and Bandung (West Java).

In addition, Lutfi continued, in the future, pluralism in the world trade would continue to rise the world economic growth, with the use of regional and local currencies becoming more massive.

Asia is also predicted to account for up to 54 percent of the total world economy by 2045, with China as the superpower that dominates the economy.

However, he said the potential for an increase in the earth’s climate from 3 to 3.5 degrees Celsius and the depletion of natural resources need to be taken into account and should be addressed early.

“Hopefully this climate prediction is not correct. Because if the world temperature rises, sea levels will rise, and the Indonesian archipelago will become a victim,” Minister Lutfi said.

Reporting by Indonesia Window