As time goes by, the world keeps on changing. By 2050, it is projected that the globe would have undergone massive changes. A report produced by the PricewaterhouseCoopers (PwC) shows the countries that will be the most influential economically by 2050. The report, termed The Long View, ranked 32 countries projected by their GDP and purchasing power parity. The purchasing power parity is a theory in economics that tries to compare the currencies of different countries using an approach termed as the basket of goods. By 2050, most of the current economic powerhouses will have dropped drastically except for the United States. Below is a brief description of some of the countries that will be economic powerhouses by 2050, including China, the US, India, and Indonesia.
Largest Projected Economies By 2050
China is a unitary one-part sovereign state with a population of about 1.39 billion. China hosts the largest number of people in the world. It is projected that by 2050, the gross domestic product of this country will have increased to around $49,853 billion USD making it the world’s largest economy. The economy of this country will contribute to about 20% of the world’s economy. It will be a considerable alteration of economic power because the US economy was stronger than that of China and India in 2016. The rapid growth of the economy can be attributed to the massive increase in the rising state investment.
The US economy can be classified as being highly developed, and it is ranked as the largest economy concerning nominal GDP and the second-largest regarding purchasing power parity. The US has a well advanced industrial sector, and it is also one of the leading high-technology innovators, coupled with its many natural resources. Notably, the US economy has been stable and ever rising since the end of World War II. The United States hosts one of the largest and most dominant financial markets, i.e., the New York Stock Exchange. By 2050, the United States will be the second leading economic house after China with a GDP of $34,102 billion USD.
The economy of India can be described as a mixed economy. It is projected that by 2050, India will be the third leading economy after China and the US. The positive growth of the economy of this country can be attributed to its young population. The young population in this country directly corresponds to a low dependency ratio and good savings. This country has one of the fastest growing service sectors in the entire world. Since 2001, it has been experiencing an annual growth rate of approximately 9%. Many factors are contributing to the growth of the GDP of this country including significant exports of IT and software services which generate a lot of income ($154 billion USD by 2017). By 2050, it is estimated that India will have a GDP of $28,021 billion USD making it the third most powerful economy in the world.
Indonesia is a transcontinental unitary sovereign state. The population of this country is estimated to be 261.1 million people. The GDP of this country is approximated to be growing at an annual rate of about 5%. This growth will put this country in the scales of the world most strong economies by 2050; Indonesia will be the fourth largest economy by 2050 with a GDP of $7,275 billion USD.
What Dictates the Rise of GDP?
The gross domestic product is an economic measure of the market value. The GDP of a nation is said to grow if the country has a higher production and that there is increased wage that leads to higher consumer demands.