River Basins Critical for Emerging Markets
Poor management of water resources could stifle economic growth in some of the world’s most rapidly developing economies, according to research commissioned by banking group HSBC. The study, by consultancy Frontier Economics, estimates that by 2050 the world’s ten most populous river basins will be producing a quarter of the globe’s gross domestic product, compared with 10% now. But seven of them will be facing water scarcity without significant investment in better water management.
“This could mean the GDP growth expected in the river basins would not materialise – and would therefore mean wider forecasts for emerging markets will not be achieved,” the report said. The key river systems identified by the study are mostly in China, India and North Africa.