By Rogers Atukunda
A report by Goldman Sachs paints a picture of a dramatically altered global economic landscape by the year 2075. The report projects that China, India, and the United States will remain the world’s top three economies, but with significantly shifted GDP figures.
China’s Continued Dominance: China is projected to maintain its position as the world’s largest economy with a staggering GDP of $57 trillion. This reflects the nation’s continued economic growth and global influence.
India’s Rise: India is poised to become the world’s second-largest economy with a projected GDP of $52.5 trillion. This significant growth is attributed to India’s large and increasingly skilled workforce, coupled with ongoing economic reforms.
US Remains a Powerhouse: The United States is projected to hold onto the third spot with a GDP of $51.5 trillion. While facing challenges, the US economy is expected to remain resilient and innovative.
The Rise of Emerging Economies: The report highlights the remarkable rise of several emerging economies. Indonesia ($13.7 trillion), Nigeria ($13.1 trillion), and Pakistan ($12.3 trillion) are projected to become economic powerhouses, reflecting the shifting economic centre of gravity towards Asia and Africa.
According to research by Goldman Sachs, the global potential growth is expected to slow, largely due to slower labour force growth and projections suggest that global growth will average just under 3% annually and continue on a declining path.
Other Notable Projections:
Egypt ($10.4 trillion), Brazil ($8.7 trillion), and Germany ($8.1 trillion) are also projected to have substantial economic growth.
Several European nations, including the UK, France, and Germany, are expected to maintain their positions as major economic players.
Japan ($7.5 trillion) and Russia ($6.9 trillion) are projected to experience slower growth compared to other major economies.
Some other insights from the report include:
China’s population is expected to decrease to 1.02 billion by 2075.
Japan’s GDP is expected to grow by less than one per cent annually for the next several decades.
South Africa is expected to emerge as the world’s 25th economy by 2075.
The US will remain more than twice as rich as both India and China by 2075.
The gap between the largest three economies and all other economies is large.
The Euro area represents a fourth economic superpower if it is treated as a single economy.
Implications:
Goldman Sachs’ projections have significant implications for global trade, geopolitics, and international relations. The rise of emerging economies could lead to increased competition and a more multipolar world order. The report underscores the need for countries to adapt to these changing economic realities and invest in education, infrastructure, and innovation to ensure future prosperity.
These projections are based on current trends and assumptions, and actual outcomes may differ significantly.
According to Goldman Sachs, the world’s largest economies in 2075 are projected to be:
- China: $57 trillion
- India: $52.5 trillion
- United States: $51.5 trillion
- Indonesia: $13.7 trillion
- Nigeria: $13.1 trillion
- Pakistan: $12.3 trillion
- Germany: $8.1 trillion
- Mexico: $7.6 trillion
- Egypt: $10.4 trillion
- Brazil: $8.7 trillion
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