Question

By 2050, who do you feel will be the global leader with regards to economic power and the GDP?

Please provide references for the information provided.

Answer 1

Key findings

This report sets out our latest long-term global growth projections to 2050 for 32 of the largest economies in the world, accounting for around 85% of world GDP.

Key results of our analysis (as summarised also in the accompanying video) include:

• The world economy could more than double in size by 2050, far outstripping population growth, due to continued technology-driven productivity improvements

• Emerging markets (E7) could grow around twice as fast as advanced economies (G7) on average

• As a result, six of the seven largest economies in the world are projected to be emerging economies in 2050 led by China (1st), India (2nd) and Indonesia (4th)

• The US could be down to third place in the global GDP rankings while the EU27’s share of world GDP could fall below 10% by 2050

• UK could be down to 10th place by 2050, France out of the top 10 and Italy out of the top 20 as they are overtaken by faster growing emerging economies like Mexico, Turkey and Vietnam respectively

• But emerging economies need to enhance their institutions and their infrastructure significantly if they are to realise their long-term growth potential.