Most financial experts and the average layperson are having a difficult time predicting the near future of the global economy. Meanwhile, PricewaterhouseCoopers is making bold predictions about the economy 33 years from now.
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PricewaterhouseCoopers, the UK based professional services network, predicts that by the year 2050 China will be the world’s largest economy by a healthy margin. The firm projects that India will surpass the United States in economic growth and become the second largest economy.
PwC’s John Hawksworth has also predicted a huge growth. “We also think the world economy will more than double in size between now and 2050, far outstripping population growth.” Hawksworth is PricewaterhouseCoopers chief economist.
Currently, the largest economies on the globe are China, the United States, India, Japan, Germany, Russia, Brazil, Indonesia, the UK and France. But PricewaterhouseCoopers predicts a huge shift, as Mexico joins the ranks of top global economies and as China, India and Japan climb the ranks.
The report by PwC makes specific predictions that the United States and the United Kingdom will steadily move down the list. Vietnam, Bangladesh and India will gain ground as three of the world’s fastest growing economies.
PwC cites “youthful and fast growing-age populations” as factors in these nations’ projected success. But the firm issued a caveat that the countries would need to continue education and economic reform in order to see this success.
The 2008-2009 financial crisis marked the slowest economic growth in recent history. Since the crisis, trade growth has been lower than GDP growth. PwC suggests that weak consumption could be the cause of this stagnant growth.
However, China’s economy has recently begun the transition to one more automated, and this may impact a move toward a more digital economy. This will “[shorten] global supply chains thanks to new manufacturing technologies such as 3D printers’” reports PwC.
PricewaterhouseCoopers emphasizes the need for the United States to support fair trade agreements. Currently, the US and China hold 56% of global trade, and PwC urges the United States to pursue “mutually beneficial trade deals” in order to maintain a large share of this economy.