Higher pay for women and more executive positions could give markets the jolt they need, studies find.
In commemoration of Women’s History Month in March and International Women’s Day on Friday, March 8, a number of financial organizations are focusing on the actual and potential power of women in the economy and financial markets. Narrowing the gap between the two would not only boost U.S. and global growth but also increase gains in U.S. and global stock markets.
S&P Global found that increasing the participation of women in the U.S. workforce to match the rate in other advanced economies — the U.S. placed 13 among top OECD countries, according to Bank of America Merrill Lynch and the World Bank — U.S. GDP could potentially increase 0.2 percentage points annually, which would boost S&P 500 growth by 0.7% per year.
After 10 years that could yield a $2.87 trillion increase in market capitalization in the U.S. and $5.87 trillion increase in capitalization of global markets, according to S&P Global, which notes that stronger growth in the U.S. boosts market growth abroad. The increases, however, vary by country, according to S&P Global.
The World Economic Forum in 2017 said that closing the economic gender gap across countries by 2025 could increase global GDP by $5.3 trillion; Merrill, citing McKinsey & Co., says the increase could be several times that, $12 trillion to $28 trillion, which translates into 13% to 31% faster GDP growth.
www.thinkadvisor.com
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