By Rob Starr, Content Manager, Big4.com
The UK is predicted to drop to 11th place in rankings of the world’s largest economies by 2050 and the global financial crisis and its aftermath has accelerated the shift of the economic centre of gravity to China, India and other emerging economies, according to the latest update of PwC’s ‘The World in 2050’ series of reports.
John Hawksworth, chief economist at PwC, said:
“Although we expect the UK to drop out of the top 10 largest economies by 2050, the projected average UK growth rate to 2050 of just over 2% is similar to France and stronger than for other large Western European economies such as Germany, Italy and Spain that face even bigger challenges than the UK from an ageing population and declining labour forces in the long run.”
Beyond the largest economies, the report argues that Malaysia has considerable long-term growth potential, while Poland could continue to outpace its Western European neighbours for some decades to come. These two economies were included in the analysis for the first time this year, with commentaries written by senior PwC economists in these countries.
More generally, the report highlights that it is not just the BRICs that have strong long-term growth potential. Other emerging economies such as Indonesia, Mexico, Turkey, Nigeria, Vietnam and South Africa also have good prospects if they can continue to pursue growth-friendly economic policies.