The World in 2050 Report

The report, The World in 2050 by PricewaterhouseCoopers (PwC) was published on 7 January 2011. According to the forecasts by PwC India can be expected to be the fastest growing large economy in the world over the period to 2050. India’s share of global GDP, measured at market exchange will rise to around 13 per cent, from 2 per cent in 2009. India will overtake all G7 countries except the US, to become the world's third largest economy with a projected GDP of $31313 billion. China, currently the world's third largest economy is estimated to move to the No. 1 spot by 2040, with an estimated GDP of $51180 billion by 2050. PwC however warned that India will only achieve this performance if it maintains a prudent fiscal policy as well as continues to open up to foreign trade and investment, and further invest in transport and energy infrastructure, and education.

India's growing young population will spur its growth while China's rapidly aging population will lead to its rate of gain. The Chinese economy will be 35 per cent larger than the US by 2050. Russia will also be adversely affected by its shrinking working age population, and will be the slowest of the E7 countries.

The World in 2050 report provides a strikingly gloomy picture for the G7 nations of France, Germany, Italy, Japan, the UK, US and Canada. The combined economies of the so-called E-7 group of countries, comprising India, China, Brazil, Mexico, Russia, Indonesia and Turkey is expected to be 64 per cent larger than the G7 by 2050. Dependence on European and American export markets will pose a problem for the G7 nations.

Among the countries likely to see the biggest falls is Australia, which could fall off the top 20 ranking. Also Britain’s ranking will dip from sixth to ninth position (measured by MER) will be accentuated by its over-dependence on the EU and US as trading partners.