LONDON – Over the next three decades, the global economy will be dominated by China, and the US economy will lose steam and fall behind India, says consulting firm PricewaterhouseCoopers (PwC).
Russia will become the leading European economy ahead of Germany, UK, and Italy with GDP of $7 trillion, according to the report.
In a report entitled “The long view: how will the global economic order change by 2050?,” the professional services giant ranked 32 countries by their projected global GDP, measured by purchasing power parity (PPP).
PPP is used by macroeconomists to determine the economic productivity and standards of living between countries.
PwC concluded that by 2050, China’s GDP would reach $58.5 trillion, India, over $44 trillion, while the US will have a $34.1 trillion economy.
As of 2016, Pakistan stands at 24th position according to GDP rankings. The South Asian nation will rise four places by 2030 and four more by 2050, becoming 16th economy in the world.
“Growth is expected to be driven largely by emerging market and developing countries, with the E7 economies of Brazil, China, India, Indonesia, Mexico, Russia and Turkey growing at an annual average rate of 3.5% over the next 34 years, compared to an average of just 1.6% for the advanced G7 nations of the US, Canada, France, Germany, Italy, the UK and Japan.”
PWC predicts that another emerging market economy – Indonesia – is going to move up the rankings and overtake Europe’s powerhouse economy Germany and even Russia by 2050.
Given a robust annual growth of four to five percent, Vietnam, the Philippines and Nigeria are predicted to make the greatest move up the GDP rankings.
The world economy will double in size by 2042, PWC forecasts, “growing at an average annual rate of just over 2.5% between 2016 and 2050.