For only the third time since the Industrial Revolution, the world may be entering a long-term growth cycle that will lift all economies simultaneously, driving bond yields and commodity prices higher.

A team of economists from Goldman Sachs, PricewaterhouseCoopers LLP and London’s Standard Chartered Bank are among those predicting a growth spurt in coming decades led by emerging nations that will be strong enough to boost developed countries.

Global gross domestic product will grow to $143 trillion by 2030, allowing for inflation and market-exchange rates, from $62 trillion in 2010, with China and other emerging markets accounting for about two thirds of any rise.

Economists at many institutions are predicting a “super-cycle” of historically high growth that will last at least a generation and will be led by booming trade, investment and urbanisation. They believe that such a cycle has occurred just twice since the end of the 18th century: the four decades before the First World War and the three following the Second World War. They are betting the new phase will contribute to a reversal in the three-decade decline for U.S. bond yields after 10-year Treasury notes lost an average 40 basis points a year since the early 1980s.

Signs of Momentum

The 10-year U.S. Treasury note yielded 3.41% in New York on Jan. 21 compared with 15.8% in 1981 and a record low of 2.04% in December 2008. Signs of momentum in the U.S. economy have helped increase the yield from about 2.9% at the start of December.

Goldman Sachs Asset Management Chairman Jim O’Neill - who found fame for promoting the “BRIC” economies of Brazil, Russia, India and China - says their rise has a positive impact beyond their borders, with Chinese imports totalling about $400 billion, almost the equivalent of South Africa’s economy last year. That should attract investors to rich-nation companies with links to these markets, and the resurgence in the U.S. economy has prompted O’Neill to predict higher U.S. bond yields in 2011.

‘Out of Date’

“World-trend economic growth is being lifted,” said London-based O’Neill, who helps manage $840 billion. “The notion that BRICs benefit at the expense of others is increasingly out of date.”

Investors should buy copper, coal and oil to take advantage of the growth of cities in emerging markets, according to Standard Chartered, which says the Chinese Yuan, Indian Rupee and Korean Won will appreciate on strengthening domestic growth.