Center of global economy to shift from Europe to Asia - PwC
According to the report, in terms of economic growth developing countries will surpass the G7 more than twice. The growth of E7 economies - Brazil, China, India, Indonesia, Mexico, Russia and Turkey - in the next 34 years will be 3.5 vs. 1.6% of G7: Canada, France, Germany, Italy, Japan, UK and USA. The size of the combined GDP of the E7 will also be twice the size of G7's. In 2015, the figures were almost equal.
By 2050 rising economies may also increase its share in the world GDP from 35 to 50%. At the same time the share of the G7, by contrast, will reduce to slightly more than 20%. The share of 27 EU economies (except UK) in the structure of global GDP will be less than 10% and yield to India's GDP.
China will remain the leader in terms of PPP. By 2050 it will have 20% of world GDP, or $58.5 per trillion. Also in the top 5 will be India, USA, Indonesia and Brazil. Vietnam, India and Bangladesh will become the fastest growing economies in the world in the next 34 years. Poland will be the fastest growing among the major EU economies. After finalizing the Brexit, UK will be able to reach the growth rate, outstripping the average in the EU.
In the foreseeable future, developed countries will still be ahead in terms of incomes. Emerging economies will be able to catch up by 2050, in case they realize their growth potential. In order to do this they will need to implement structural reforms in order to improve macroeconomic stability, diversify their economies reducing their dependence on natural resources, as well as to increase the effectiveness of political and legal institutions, says PwC.
