Economic growth of developing countries projected to support U.S. agricultural export gains
Current USDA projections indicate that, despite the negative impacts of COVID-19 on global economies in 2020, average rates of economic growth are expected to strengthen across most global regions during 2021-30 compared with the previous decade. Key for U.S. agriculture is higher projected growth in incomes—as measured by changes in real Gross Domestic Product (GDP)—in developing regions. Income gains and dietary shifts in these regions drive most of the growth in global import demand for U.S. agricultural commodities. Projections indicate higher gains in incomes across developing country regions, including South and Southeast Asia, the Middle East, North Africa and Latin America. Slower projected growth in East Asia reflects an anticipated continued deceleration in China’s growth during 2021-30, although it will remain one of the world’s fastest growing economies. Developing countries in all regions experienced major pandemic-related contractions in GDP in 2020, but most are forecast to recover in 2021. Uncertainty in the pace of disease control and the length of economic recovery may lead to changes in the 2021-30 outlook for some countries, however. The data in this chart appear in the “Early-Release Tables from USDA Agricultural Projections to 2030,” published on November 6, 2020, and are accessible via the Economic Research Service Agricultural Baseline topic page. The full report, USDA Agricultural Projections to 2030, will be released on February 16, 2021.
See also: Economic recovery, competition shape projections of U.S. farm prices to 2030
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