Recent years have seen the beginning of a radical shift in the global economic power towards many emerging markets. Emerging economies have stronger growth potential than current advanced economies.
The PwC report highlights that by 2050, emerging economies such as Indonesia will be larger than the UK and France and Pakistan is likely to overtake Italy and Canada (on a PPP basis). In terms of growth, Vietnam, India and Bangladesh could be the fastest growing economies over the period to 2050.
Growth in E7 countries will continue to outpace that of the G7.
Two and half decades ago, E7 were 35% the size of the G7 in PPP terms. Twenty-five years later, these emerging economies had overtaken the G7. In coming 25 years, the E7 could be double the size of the G7 by 2040, marking a significant shift in global economic power.
The global economic power shift is said to remain focused on China and India. China has already come up to be the largest economy in PPP terms and is expected to hold the top position till 2050 with a GDP at PPP of 58499.
India is expected to be the world’s second largest economy. India has enough potential to be the fastest growing economy and is expected to come ahead of USA by 2050, with a projected GDP at PPP of 44128. USA is expected to be in the third position and will fall behind India by 2050 with a projected GDP at PPP of 34102.
Indonesia follows closely and is expected to be the fourth top economy with a projected GDP at PPP of 10502 (in constant 2016 $bn).
Japan being an advanced economy has managed to stay on the list of top economies of the world and ranks eighth with a projected GDP at PPP of 6779 ($bn).