The USA has long been the King when it comes to the global economy. With a GDP greater than some countries like China and India, you would think they have locked in their position, and will never be knocked off their throne. Per a Report by Price Water House, the global economy is expected to double by 2050. So, what does that mean for the USA? Will they reign supreme decades from now? Well, the data suggests otherwise.
In 2030 China, which is currently second on line to the throne is expected to overtake the American economy by. That’s not all though. Eventually the USA will be knocked down another peg by the year 2050 Well if the predictions by Price Water House turns out to be accurate, India will come in second to China, with the U.S. rounding out the top three.
John Hawksworth, chief economist at Price Water house said, “By 2050 we project China will be the largest economy in the world by a significant margin, while India could have edged past the US into second place and Indonesia have risen to fourth place.”
On a different basis, like the PPP, Indonesia is expected to have a significant jump from the eight to the fourth largest economy in the world. Brazil is also expected to make a jump from seventh to fifth. Japan however, is expected to fall from fourth to eighth, Germany from fifth to ninth and the U.K. from ninth to 10th. France is expected to be bumped out of the top 10 completely.
The trend of moving away from established advanced economies, like many countries in Europe, and looking towards emerging economies in Asia and elsewhere is something we will begin to see. Countries like Brazil, China, Indonesia, Mexico, Russia and Turkey will see average annual economic growth hit nearly 3.5 percent over the next three decades and change.
“This shift of global economic shift in power will largely be driven by China and India. The report said. “For the advanced economies, growth is projected to be much lower on average compared to the emerging economies between 2016 and 2050.”
PwC ends it’s report by stating these results are more of a potential outcome rather than what “will” happen, saying that the world is “entering a period of considerable political, social and economic uncertainty.”
“Of course, we should not dismiss political shocks like Trump or Brexit to the extent they point to deeper structural shifts, notably a populist backlash against globalization, automation and the perceived impact of these trends in increasing income inequality and weakening social cohesion,” Hawksworth said. “These trends pose real policy challenges across the developed world and beyond and … there is no silver bullet to address these concerns.”
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