The Top 20 Largest Economies in the World by 2050

In this article, we will explore the projected rankings of the 20 largest economies in the world by the year 2050. We will highlight the growth prospects and significant shifts in global economic power. PricewaterhouseCoopers International Limited (PwC), a leading professional services network, released a report titled “The World in 2050” in 2017, providing valuable insights into the future economic landscape.

The Changing Global Economic Order:

By 2050, the global economy is expected to grow by 130%, with China projected to hold approximately 20% of the world’s GDP in purchasing power parity. India, surpassing the United States, is anticipated to become the largest economy globally. The European Union’s share of the global GDP is projected to decline below 10%. Moreover, the Emerging 7 (E7) economies are expected to grow almost twice as fast as the advanced G7 economies due to negative growth in the working-age population of G7 countries.

A Radical Shift in Economic Power:

This projected transformation represents a radical shift in global economic power, particularly when considering that the E7 economies were only half the size of the G7 countries in 1995. Analysts have long predicted that this century would belong to Asia, and these projections reinforce that belief.

Role of Corporations in Economic Prosperity:

Corporations have always played a pivotal role in a nation’s economic prosperity. According to a McKinsey Global Institute report, the business sector contributed 72% of the total GDP share in OECD member nations. In 2017, the United States, for example, generated $14 trillion from the corporate sector, accounting for a significant portion of its GDP. Notably, companies like Apple Inc. (NASDAQ:AAPL), Microsoft Corporation (NASDAQ:MSFT), and Alphabet Inc. (NASDAQ:GOOG) have strategically shifted their operations to Asian countries, attracted by skilled labor and vast market opportunities. Asia, with over half of the world’s population, is home to 80% of Asian developing economies classified as middle income and 15.6% as high income by the World Bank.

Asian Economic Powerhouses:

China, the largest economy in Asia, is projected by PwC to become the world’s largest economy by 2050. Currently, Apple Inc. (NASDAQ:AAPL) manufactures 95% of its iPhones, iPads, and Macbooks in China. Additionally, China accounted for approximately 20% of Apple Inc.’s revenue in 2022. Apple Inc. is also expanding its presence in India, as evidenced by the inauguration of its first retail store in Mumbai. Microsoft Corporation (NASDAQ:MSFT) has increased its investments in Asia, including the establishment of a datacenter in Indonesia and expectations of significant revenue growth in the United Arab Emirates. Alphabet Inc. (NASDAQ:GOOG)’s Google plans to open a new datacenter in Japan and has made substantial investments in Chinese e-commerce company JD.com.

Significance of Asian Corporations:

Asian corporations collectively contribute an estimated $19 trillion to the global economy annually. India’s Tata Group, ranked among the world’s largest companies by Brand Finance, showcases the country’s economic strength. Reliance Industries Limited surpassed several renowned companies on Forbes’ Global 2000 list. Taiwan Semiconductor Manufacturing Company Limited (TSMC), a Taiwanese company, dominates 60% of the global foundry industry’s annual output.

Leading Economic Giants:

Alibaba Group Holding Limited (NYSE:BABA), a major e-commerce company, holds a dominant share in China’s wholesale and retail markets. Toyota Motor Corporation (NYSE:TM), a Japanese car manufacturer, commands an 11.5% share of the global automobile industry’s output.

Now, let’s delve into the list of the world’s largest economies by the mid-21st century, arranged in chronological order from the bottom to the top.

20. Vietnam

Projected GDP at PPP: $3.18 trillion

Vietnam is anticipated to be among the three fastest-growing economies globally between 2016 and 2050. With an average annual growth rate of 5.2%, it is expected to climb 12 positions to become the 20th largest economy in the world by 2050. Vietnam stands to benefit from the shifting US supply chains amid the US-China economic war.

19. Philippines

Projected GDP at PPP: $3.34 trillion

PwC’s projections estimate the Philippines’ GDP to grow by an average of 4.3% each year until 2050. In 2023 alone, it is forecasted to grow by 6.3%. The Asian Development Bank highlights the country’s progress towards becoming an upper middle-income economy.

18. South Korea

Projected GDP at PPP: $3.54 trillion

As Asia’s fourth-largest economy and the 13th largest globally, South Korea is projected to experience a decline in its share of the global GDP in the coming decades. This trend is attributed to declining working-age populations and the rise of new drivers of the global economy.

17. Iran

Projected GDP at PPP: $3.90 trillion

Despite severe Western sanctions and a weak currency, Iran secures a place on our list of the 20 largest economies in Asia. By 2050, it is projected to be among the world’s top 20 economies.

16. Pakistan

Projected GDP at PPP: $4.24 trillion

Pakistan, the fifth most populous nation globally, boasts a substantial population of youth that drives its economy. Despite recent economic challenges, PwC forecasts Pakistan to be among the world’s 20 largest economies by 2050. Goldman Sachs also predicts Pakistan to become the sixth largest economy by 2075.

15. Egypt

Projected GDP at PPP: $4.33 trillion

Egypt is expected to overtake countries like Canada and Italy on a purchasing power parity basis to become the 15th largest economy in the world by 2050. Currently ranked 32nd among the 50 largest economies globally in 2023, Egypt demonstrates significant growth potential.

14. Nigeria

Projected GDP at PPP: $4.35 trillion

As the richest country in Africa with vast gas reserves, Nigeria can ascend to become the 14th largest economy globally by strengthening national institutions, developing infrastructure, and diversifying its economy, as suggested by PwC.

13. Saudi Arabia

Projected GDP at PPP: $4.69 trillion

Saudi Arabia, the sixth largest economy in Asia and a major oil exporter, holds a founding membership in OPEC. By 2050, it is projected to be the 13th largest economy in the world.

12. France

Projected GDP at PPP: $4.71 trillion

France, currently among the top 10 largest economies globally, is expected to drop out of this list by 2050. While the French economy will remain strong, other advanced economies are predicted to grow at a faster pace.

11. Turkey

Projected GDP at PPP: $5.18 trillion

Despite recent challenges, Turkey’s economy remains resilient and on a growth trajectory. With a GDP growth rate exceeding 5% last year, PwC projects Turkey to be the 11th largest economy globally by 2050.

10. United Kingdom

Projected GDP at PPP: $5.37 trillion

As Europe’s second-largest economy, the United Kingdom is predicted to drop to the 10th position by 2050. However, despite Brexit, it may experience faster growth compared to other European nations due to its favorable working-age population demographics.

9. Germany

Projected GDP at PPP: $6.14 trillion

PwC forecasts a decline in Germany’s population size by 2050, accompanied by a decrease in investment rates. By then, Germany is expected to rank as the ninth largest economy globally.

8. Japan

Projected GDP at PPP: $6.78 trillion

As the second-largest economy in Asia and the third-largest globally, Japan relies on exports in electronics and automobiles. However, by 2050, it is projected to drop to the eighth position in the rankings.

7. Mexico

Projected GDP at PPP: $6.86 trillion

Mexico, a major exporter in Latin America, possesses a GDP nearing $1.5 trillion. It is projected to be one of the fastest-growing economies, attracting a significant share of US supply chains. Mexico is expected to become the seventh largest economy globally by 2050.

6. Russia

Projected GDP at PPP: $7.13 trillion

Despite economic challenges, Russia, with its vast oil and natural gas reserves, is anticipated to remain among the top 10 largest economies globally by 2050. It is projected to secure the sixth position with a GDP at PPP of $7.13 trillion.

5. Brazil

Projected GDP at PPP: $7.54 trillion

Driven by its abundant natural resources and a young population, Brazil is projected to become the fifth largest economy globally by 2050. It will surpass Germany, Japan, and the United Kingdom in terms of GDP.

4. Indonesia

Projected GDP at PPP: $10.50 trillion

As one of the most populous nations globally, Indonesia is forecasted to become the fourth largest economy in the world by 2050. It currently ranks 16th and is the largest economy in Southeast Asia.

3. United States

Projected GDP at PPP: $34.10 trillion

The United States, currently the largest economy globally and a dominant world power, is expected to drop to the third position by 2050. Its economic dominance may diminish, with China and India surpassing it in terms of GDP.

2. India

Projected GDP at PPP: $44.13 trillion

PwC predicts India will surpass the United States and become the second largest economy globally by 2050. It is also expected to surpass Japan’s economy by 2032. India’s growing influence in Asia and the world is evident, driven by its economic strength.

1. China

Projected GDP at PPP: $58.50 trillion

China, the largest economy in Asia and the world’s second-largest, is projected to claim the top spot by 2050. Holding at least 20% share of the global GDP, China’s remarkable economic progress positions it to shape the global economic order. The increasing acceptance of the Chinese Yuan as a trading currency further reinforces its economic influence.

The projected rankings of the world’s largest economies by 2050 reveal significant shifts in global economic power. Asia, led by China and India, is expected to play a dominant role in shaping the global economic landscape. The growth prospects of these economies, combined with advancements in technology and evolving market dynamics, will influence the future trajectory of global economic prosperity.

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