China to Become World’s Largest Economy by 2017
ThinkstockThe U.S. will soon become the world’s second-largest economy according to a new report from PricewaterhouseCoopers (PwC). Measured on purchasing power parity (PPP) basis, China will overtake the U.S. in 2017; on a market exchange rate basis, the U.S. will…
The U.S. will soon become the world’s second-largest economy according to a new report from PricewaterhouseCoopers (PwC). Measured on purchasing power parity (PPP) basis, China will overtake the U.S. in 2017; on a market exchange rate basis, the U.S. will fall to second place by 2027. Even more startling, perhaps, is PwC’s projection that the U.K. will drop out of the world’s top ten largest economies by 2050.
In 2030, the top five economies on a PPP basis will be China ($30.6 trillion), the U.S. ($23.4 trillion), India ($13.7 trillion), Japan ($5.8 trillion), and Russia ($5.3 trillion). By 2050, the top five will be China ($53.9 trillion), the U.S. ($38 trillion), India ($34.7 trillion), Brazil ($8.8 trillion), and Russia ($8.1 trillion).
In 2011, the U.S. topped the charts with GDP of $15.1 trillion, followed by China with $11.3 trillion in GDP.
The changes are due largely to faster growth rates in the 7 largest emerging economies, which are expected to post total GDP 50% larger than the 7 largest developed economies by 2050.
The PwC report is available here.
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Paul Ausick has been writing for 247Wallst.com for more than a decade. He has written extensively on investing in the energy, defense, and technology sectors. In a previous life, he wrote technical documentation and managed a marketing communications group in Silicon Valley.
He has a bachelor's degree in English from the University of Chicago and now lives in Montana, where he fishes for trout in the summer and stays inside during the winter.
