Deep Dive: A rising middle class is key to 'good growth'

Economy and investment style

Eve Maddock-Jones
clock • 5 min read

As many of the world’s major economies face a slowdown in growth, the key to confront this could lie in the prosperity of the residents, particularly the affluence of its middle class, experts have said.

Praveen Jagwani, chief executive of UTI International, said the simplest case of demand-led growth is "more people with more money buying more stuff". "Typically, when more people enter the middle-class, it is axiomatic that their incomes have risen. With the additional money, middle-class buys its way to a higher standard of living - refrigerators, washing machines, cars, homes, healthcare, holidays etc," he said. Jagwani characterised this as ‘good growth', meaning the goldilocks scenario where unemployment and inflation are "just right", as it prevents wealth inequality and require...

To continue reading this article...

Join Investment Week for free

  • Unlimited access to real-time news, analysis and opinion from the investment industry, including the Sustainable Hub covering fund news from the ESG space
  • Get ahead of regulatory and technological changes affecting fund management
  • Important and breaking news stories selected by the editors delivered straight to your inbox each day
  • Weekly members-only newsletter with exclusive opinion pieces from leading industry experts
  • Be the first to hear about our extensive events schedule and awards programmes

Join now

 

Already an Investment Week
member?

Login

More on Investment

Investment Week unveils FMYA finalists for Technology and Marketing & PR categories

Investment Week unveils FMYA finalists for Technology and Marketing & PR categories

Ceremony on 19 June

Investment Week
clock 12 May 2025 • 1 min read
Partner Insight - Robeco Global Stars: Targeting alpha with high conviction

Partner Insight - Robeco Global Stars: Targeting alpha with high conviction

Robeco
clock 12 May 2025 • 5 min read
Trium Capital's Donald Pepper: Tariff tide reveals those swimming uncorrelated

Trium Capital's Donald Pepper: Tariff tide reveals those swimming uncorrelated

'Conventional diversification no longer provides adequate protection'

Donald Pepper
clock 30 April 2025 • 4 min read
Trustpilot
Loading page