Goldman Sachs projects that China will overtake the United States as the world's largest economy by 2035, with India and Indonesia rising to become the third and fourth largest economies by 2050; however, by 2075, the US is expected to grow faster than China due to demographic advantages, while seven of the top 10 global economies will be emerging markets, reshaping the global economic order.
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Goldman Bets: China Will Top Charts, But Not Forever | Emerging Markets to Dominate by 2075? | WIONAdded:
The world's economic map is being redrawn. Goldman Sachs has released a sweeping forecast and it tells you exactly who will be on top in 2050 and 2075. And the projections are striking and they matter for every investor and every government that is planning for future.
By 2050, Goldman Sachs projects the five largest economies will be, in order, China, the United States. And number three will be India. Number four is Indonesia. And number five is Germany.
And that is a significant shift.
Indonesia has displaced both Brazil and Russia. And Asia's rise is no longer a prediction. It's now becoming a projection backed by data.
Now here's the headline number. Goldman Sachs estimates that China will overtake the United States as the world's biggest economy by the year 2035.
That's just about nine years away.
And China's economic trajectory, despite the recent slowdowns, remains very powerful in the long term. Fast forward to 2075, and the top three economies would still be China, India, and the United States in that order.
India will edge out the United States of America to get into the second position.
But here's the twist. By 2075, the US is expected to grow faster than China. And the answer for this is fairly simple. It is demographic dividend.
The US has a much more younger and more favorable population outlook while China's aging population becomes a drag on potential growth.
But Goldman Sachs also projects that seven of the world's top 10 economies in 2075 will be today's emerging markets.
That is provided they adopt the right policies and also build strong institutions.
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