Apple, Samsung open their wallets, boosting world's economy

Developing economies are leading the next wave of CapEx as companies continue to spend over growth in demand

Companies across the developing world are stepping up investment to meet rising demand from industrial economies in what’s shaping up as a further spur to already buoyant global growth.

Big industrial economies including the US and Japan led the recent recovery in capital expenditure (CapEx). Now, such investment is broadening to emerging countries with Morgan Stanley’s tracker of economies not including China now at its highest level since 2011.

"It is going from synchronized growth to synchronized CapEx," said Chetan Ahya, co-head of global economics at Morgan Stanley in Hong Kong.

Executives are racing to keep up with demand by