E7 to reach 50% of world’s GDP by 2050, PwC says
The shift of global economic power to emerging economies is set to continue in the long run, with India, Indonesia and Vietnam among the star performers, professional services firm PwC Hungary says in a press statement sent to the Budapest Business Journal today.
The long-term global economic power shift away from the established advanced economies is set to continue over the period to 2050, as emerging market countries continue to boost their share of world GDP in the long run, despite recent mixed performance in some of these economies, PwC says. This is one of the key findings of its latest report, entitled “World in 2050: The long view: how will the global economic order change by 2050?”
“We will continue to see the shift in global economic power away from established advanced economies towards emerging economies in Asia and elsewhere. The E7 could comprise almost 50% of world GDP by 2050, while the G7’s share declines to only just over 20%,” said Csaba Polacsek, Financial Services Advisory Leader at PwC Hungary. The E7 group of emerging economies comprises China, Russia, India, Indonesia, Mexico, Brazil and Turkey.
According to the report, potential GDP growth up to 2050 for 32 of the largest economies in the world together could account for around 85% of global GDP, a projection based on the latest update of a detailed long-term global growth model first developed by PwC in 2006.
The report projects that the world economy could double in size by 2042, growing at an annual average real rate of around 2.5% between 2016 and 2050. This growth will be driven largely by emerging market and developing countries, with the E7 economies growing at an annual average rate of around 3.5% over the next 34 years, compared to only around 1.6% for the advanced G7 nations of Canada, France, Germany, Italy, Japan, the U.K. and the U.S.
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