Advanced economies are doing well, just not well enough to maintain their positions. According to a report from PricewaterhouseCooper (PwC), one of the world’s largest accounting firms, there’s going to be a major shift in economic leaders. The report claims that countries like Canada and the US will maintain minimal growth, while fast moving developing nations will close the gap between income, and surpass today’s leaders.
Projected GDP rankings
Tap or click on a country to see how it will change in rank. Source:PwC.
Today’s Advanced Economies To Stagnate
Advanced economies are expected to grow, just not as much as many developing ones. PwC predicts higher incomes in advanced economies, but emerging economies are expected to “close this gap by 2050.” The accounting firm also notes “By 2050, emerging economies such as Indonesia, Brazil and Mexico are likely to be larger than the UK and France, while Pakistan and Egypt could overtake Italy and Canada.”
Fast Growing Developing Economies To Replace Today’s Leaders
Many developing economies are expected to maintain large growth through 2050. PwC analysts believe Vietnam, India, and Bangladesh will average growth around 5% per year to at least 2050. To contrast, Canada and the US are both projected to see their GDPs continue to grow at a rate of less than 2%.
Canada To Drop Out of Top 20, US To Drop To Third
Analysts note Canada and the US will move lower in rank by GDP. Once the 7th economy in the world, Canada has fallen to number 17 this year. By 2050, this number is expected to drop even further to number 22. The firm also predicts the United States, the number 2 economy in the world, will fall to number 3 as India moves ahead. By 2030, Canada is expected to grow by 27%, and the US by 26%. Those numbers seem large, but China is expected to grow by 78%, and India is expected to grow by a 123% over the same time.
Kind of wacky to think that today’s developing countries provide more opportunity.
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