Economic Powerhouses in 2030

In just over a decade from now the largest economies are most likely to be different. China will dominate the world, followed by India and the U.S. A Standard Chartered report suggests 7 of the 10 largest economies in 2030 will be from emerging markets.

Asia’s share of global GDP will rise from 28% to 35% by 2030 and will match Europe and U.S. combined. Around 5.4 billion people will form the middle class, up from 3 billion in 2015.

China’s GDP will hit USD64.2 trillion and moderate to 5% growth by 2030. India is expected to accelerate to 7.8% growth and reach a GDP of USD46.3 trillion by 2030. The U.S. will be a USD31 trillion economy. Indonesia will rise to be 4^th largest economy in the world with GDP at USD10.1 trillion in 2030. It is probably 3 times the size of Australia. Others that will rise include Turkey (USD9.1 trillion), Brazil (USD8.6 trillion) and Egypt (USD8.2 trillion). Russia, Japan and Germany will drop places but remain fairly large.

What is the implication? Businesses and prospective trade arrangements will have to pay closer attention to those rising economies which may dominate and dictate the future. Long-term planners in corporates or banks will see the need to have some representation or association in those nations that are expected to rise over the next decade. Otherwise, they miss great opportunities.

Reference:

The World’s Economic Powerhouses Are Going To Look Very Different In Another Decade, https://www.news.com.au