We recently compiled a list of the Top 30 Largest Economies in the World by 2075 and in this article we will look at the country that’s expected to be the largest in 2075.
Emerging Markets Projected to Lead by 2075
According to research by Goldman Sachs, the global potential growth is expected to slow, largely due to slower labor force growth and projections suggest that global growth will average just under 3% annually and continue on a declining path. The global population growth has halved from 2% per year to less than 1% over the past five decades, and it is expected to fall to nearly zero by 2075. Despite a slowdown in real GDP growth for both developed and emerging economies, emerging markets, particularly in Asia, are projected to continue outpacing developed markets.
By 2050, the five largest economies in the world are expected to be China, the United States, India, Indonesia, and Germany. You can also take a look at the Top 20 Largest Economies in the World by 2050.
The US is unlikely to perform exceptionally due to significantly lower potential growth compared to large emerging economies. The potential growth of the US is expected to remain significantly lower than large emerging economies such as China and India. The appreciation of the Dollar elevated the value of the US economy, which has pushed it significantly above its purchasing power parity-based fair value, but the Dollar’s strength is expected to diminish over the next 10 years, suggesting a likely depreciation. Nigeria, Pakistan, and Egypt could also be among the world’s largest economies by 2075 if appropriate policies are implemented.
Globalization has significantly reduced income inequality between countries and emerging markets have led to a more equal distribution of global incomes and global income inequality has decreased over the past two decades, however, income inequality within countries has risen, posing a challenge to the future of globalization.
Goldman Sachs’ research also discussed the potential challenges for global economic growth and income convergence. First is the risk that populist nationalism could lead to increased protectionism and a reversal of globalization. Populist nationalists have risen to power in several countries and have affected globalization. However, the risk of a reversal remains evident. Secondly the risk of environmental catastrophe due to climate change. Many countries have successfully decoupled economic growth from carbon emissions, demonstrating that this is achievable on a global scale. However, achieving sustainable growth will require economic sacrifices and a globally coordinated response, both of which present significant political challenges.
For the years 2070-2079, emerging economies are forecasted to grow at 2.3% and will continue to outstrip developed economies due to productivity growth of only 1.1%. Asia will remain the fastest-growing region with 2.0% growth, however, the Chinese economy is projected to observe one of the highest decelerations. Growth in Latin American economies is forecasted at 1.9% and is expected to grow gradually and accelerate over the next 10 years before decelerating once again in the outer decades. Growth in Central and Eastern Europe, the Middle East, and Africa is expected to remain relatively stable at 3.2%, due to an increasing contribution from African economies.
One of the Biggest Companies in Asia
Companies play a significant role as primary economic engines for economies around the world. PDD Holdings Inc. (NASDAQ:PDD) also known as Pinduoduo Inc. is a prominent Chinese company driving economic growth. PDD Holdings Inc. (NASDAQ:PDD) multinational commerce group that owns and operates a portfolio of businesses including Pinduoduo, which is an innovative e-commerce platform that connects consumers directly with small-scale farmers and offers a network of sourcing, logistics, and fulfillment services. The company also focuses on training farmers and modernizing farming practices. PDD Holdings Inc. (NASDAQ:PDD) also operates Temu, an online marketplace that connects consumers with millions of merchandise partners, manufacturers, and brands. Temu operates in several countries including the United States, Australia, New Zealand, the United Kingdom, Europe, South Korea, and South Africa. On May 22, PDD Holdings Inc. (NASDAQ:PDD) reported that its revenue for the first quarter ended on March 31, 2024, increased 131% to $12.02 billion compared to the previous year, The company’s operating profit also increased by 275% to $3.94 billion, mainly due to an increase in fulfillment and payment processing fees. PDD Holdings Inc. (NASDAQ:PDD) forecasts a robust revenue growth of 71% for Pinduoduo in 2024, and a further 29% in 2025. The company focuses on long-term growth and invested $403.0 million in research and development for the modernization of agriculture and supply chain thereby
