Daily Management Review

PwC predicts the world's largest economies of 2030


PwC published a forecast of the world’s most powerful economies until 2030. The report is called "The long view: How will the global economic order change by 2050?". The paper includes 32 countries and projects GDP at purchasing power parity (PPP).

PPP is a measure used to determine economic performance and standard of living in different countries over time. PwC’s study shows that some countries will stay among the leaders in the period up to 2030, yet a number of countries is expected to significantly worsen their position in the ranking.

Below are the top 5 countries with the largest economies according to the PwC’s forecast up to 2030

5. Indonesia - $ 5.424 billion

Indonesia's economy belongs to the agro-industrial type. The country is classified as the most promising in economic terms among developing countries. The economy, with its market nature, is characterized by active role of the state. The government operates about 140 large enterprises in various sectors of the national economy, as well as controls prices of a number of products, including basic food and fuel and lubricants.

Industrial production makes up to 47% in total GDP of the country; the services sector’s share amounts to 37.6%, agriculture - 15.4%. At the same time, industrial production employs 12.8% of the working population, agriculture - 38.3% and the service sector - 48.9%.

4. Japan - $ 5.606 billion

Japan's economy is one of the most developed economies in the world, well-known for its high-tech (electronics and robotics). The country also boasts with transport engineering, including automotive, shipbuilding, machine tools. Local fishing fleet makes 15% of the world’s total. Agriculture is subsidized by the state, but 55% of food (for equivalent caloric content) are imported. 

3. India - $ 19.511 billion

India is a developing agro-industrial country with advanced industrial production. Local agriculture is quite diversified as large plantations coexist with small farms. Many farmers have little or no land at all. There is no electricity in most villages. India ranks first in the world by irrigated land (54.8 million hectares). Agriculture employs 60% of the workforce, and it gives 19.9% of GDP. Share of agricultural products in India’s exports amounts to 15%.

India is the fifth largest retail market in the world. According to forecasts, the industry growth rate will outpace the rest of the BRIC countries by 2020.

2. United States - $ 23.475 billion

The US economy is the world's largest economy by nominal GDP; it has composed not less than a quarter of world nominal GDP in US dollars since the end of the Second World War. By purchasing power parity, however, the US is second economy in the world. The country has one of the most diverse national economies in the world, yet nominal value of its foreign debt is one of the highest in the world.

Local financial sector is one of the most developed. Apart from the New York Stock Exchange and NASDAQ, its major financial centers are Los Angeles (Pacific Exchange), Chicago (Chicago Mercantile Exchange) and Philadelphia (Philadelphia Stock Exchange).

The US economy has a very high level of transparency. Once every week, two, month, quarter and year US Government publishes dozens of statistical reports and economic indicators. According to the legislation, some of them are subject to revision in subsequent periods depending on new data

1. China - $ 38.008 billion

The economy of the People's Republic of China is the second (after the US) economy in the world by nominal GDP, and the first by GDP at purchasing power parity.

China's economy is characterized by a global trend decline in share of agricultural products in the country's GDP. It has been growing constantly in the last 30 years.

At the beginning of the XXI century, China is the first global industrial superpower in terms of industrial production, as well as space and nuclear power: it leads the world in coal, iron, manganese, lead, zinc, antimony and tungsten ores, as well as wood industries. Local territory also produces oil, gas and uranium.

China is the world's largest producer of the absolute majority of industrial products - coke, pig iron, steel and steel pipes, aluminum, zinc, tin, nickel, televisions, radios and mobile phones, washing machines and sewing machines, bicycles and motorcycles, watches and cameras, fertilizers , cotton and silk fabrics, cement, shoes, meat, wheat, rice, sorghum, potatoes, cotton, apples, tobacco, vegetables, silk cocoons. 

source: businessinsider.com