Asia’s economic growth will continue to surge and China will likely overtake the United States’ spot as the world’s largest dollar economy in just over a decade, according to a new report.
The newest World Economic League Table (WELT) report released by the Centre for Economics and Business Research (CEBR) also concludes India will “leapfrog” Britain and France next year to become the world’s fifth largest economy. By 2027, India will move ahead of Germany to third place, the report proects.
Asia seems to be the power house in the report. By 2032, three of the world’s four largest economies will be Asian (China, India and Japan); South Korea and Indonesia will enter the top 10 and Taiwan, Thailand, Philippines and Pakistan be in the world’s top 25 economies.
“The interesting trend emerging is that by 2032 five of the 10 largest economies will be in Asia while European economies are falling down the ranking and the USA loses its top spot,” said Oliver Kolodseike, the center’s senior economist and report co-author. “Technology and urbanization will be important factors transforming the world economy over the next 15 years.”
China President Xi Jinping has said less emphasis should be placed on growth, in favor of a focus on financial risk, pollution and poverty.
The report also concludes that in 2020, Britain will bounce back to overtake France, should Brexit effects become less than feared. Eight years later, Brazil will overtake both countries to become the sixth largest economy.
Other highlights include Italy dropping out of the ten largest economies by 2023 and falling to 13th in 2029; Pakistan rising from its current 41st position to 25th by 2031; Bangladesh rising from 43rd to 31st in 2032 and Australia moving up from 13th to 11th place by 2026.
The report suggests energy will be less expensive for consumers and, because of a weak oil price, Russia will drop from its current position of 11th to 17th in 2032.
By Susan McFarland