Top 10 Richest Countries in the World is an issue that is wondered by most of investors. The fact that how much the economic market will change in the next 30 years will surprise everyone. The Gross Domestic Product (GDP) indicates the valuation of countries by measuring the value of all final goods and services in terms of currency within a country at a particular time.
Top 10 richest countries in the world according to the report published by PWC, were determined with the purchasing power parity. Let's see which countries are among these 10 countries and Turkey's place in the ranking of GDP.
After the dot-com boom in the early 2000s, efficiency has peaked in the United States and has been decreasing in the past decade. Concurrently, globalization has sped up technology transfer all over the world. These trends show that instead of innovation, the population will once again be the main driving force of economic development.
PricewaterhouseCoopers (PWC), a London-based multinational consulting firm, issued a report. "World in 2050" in February 2017 explaining how the global economic layout will change by 2050. In the report, investigators estimated that the US economy will fall to third place after India and China. The most of European countries will drop from the top 10 richest economies. These trends can have important insinuations for international investors all over the world.
China and India had the world's greatest economies before the mid-19th century because of their major population. Economic production in those days was a function of the population instead of productivity. The Industrial Reforms added efficiency to the equation, and the United States became the largest economy of the world by 1900. Creativities in production, finance and technology have helped continue this status today.
Will the United States remain at the top of richest countries in the coming years?
Economists are projected the changes as manifest oneself markets like Vietnam raised their economic traces. Knowledgeable investors should consider these changes to get the most out of their investments.
Generally, PWC estimates that the world economy will increase twofold by 2042 and grow by an average of 2.6 percent between 2016 and 2050. These development rates will be driven first and foremost by developing market countries. These are consisting of Brazil, China, India, Indonesia, and Mexico, Russia and Turkey. These countries are projected to develop 3.5 percent above the average in proportion to an average of 1.6 percent for countries. Such as Canada, France, Germany, Italy, Japan, the UK and the United States.
It is been a long time that the United States is famous for the greatest economy in the world. But these dynamics are replacing rapidly as China, India and other emerging markets win momentum. Investors must be awake of these worldwide changes and situate their portfolios to prevent nationwide bias through raised global diversity. Diversification also assists in protecting against potential geopolitical risks that may emerge from these power scrambles.
Canada is the tenth country among the top 10 richest countries in the world will have a great economy of 2.29 trillion US dollars and will have an approximate per capita income of 51,485 US dollars by 2050. It is a positive point that gives credit and makes Canada more valuable or credit for the famous healthy banking system (considered by experts as one of the most durable economies in the world).
The economy of France will reach 2.75 trillion US dollars and it is estimated per capita income will be 40,643 US dollars. Despite that, there will be hard times for France, as it will cope with slow growth and demographic challenges such as a decrease in the working population. Consequently, in the economic league table left behind by countries such as Mexico, India and Brazil, three rows fell to ninth place.
Mexico takes its place at ninth rank among the top 10 richest countries in the world. It is also the second Latin American participant in the pantheon of the default economic power centers. The estimated Gross Domestic Product of Mexico will reach 2.81 trillion US dollars and per capita income wÆill be 21,793 US dollars. Future expectations look immensely good for Mexico: its present-day president, Enrique Nieto, leads a series of comprehensive improvements from telecommunications to the energy that will increase the country's long-term productivity and welfare.
Brazil is a surprising introduction to the top 10 richest countries in the world, given its previous experience of more than 500 percent inflation levels. With an estimated Gross Domestic Product of 2.96 trillion US dollars and per capita income that will reach 13,547 US dollars. Brazil is determined to have the seventh strongest economy in the world 30 years later. As well as this will be a very large economy - The population of Brazil is expected to become more than 200 million. Still, not all will be perfect: the country's per capita income is estimated to decline from 52nd to 61st.
The United Kingdom's Gross Domestic Product in 2050 is estimated to be 3.58 trillion US dollars, with a per capita income of 49,412 US dollars. The present gap between the British economic wealth and Germany's economic wealth will contract significantly. BZZZZy 2050 (from 346 billion US dollars to 138 billion US dollars), with the annual estimated increase in the UK working population. The United Kingdom's economic league table is expected to fall in only one position, so it remains there, although Brexit's long-term results are more difficult to predict.
Germany will have an estimated Gross Domestic Product of 3.71 trillion US dollars, with a per capita income that will achieve to 52,683 US dollars, making it the greatest European economy in 2050. Considering that Germany is roughly the same dimension in terms of population, it is quite an admirable country like the United Kingdom.
The size of the economy of Japan will be 6.43 trillion US dollars relative to Gross Domestic Product; per capita income is estimated at 63,244 US dollars. Japan faces challenges relating to the structure of the aging population and a dramatic decrease of approximately 40 percent in the working-age population.
The narrowing working population is also waited for to support the growth of the aging population. It is possible that inducements will be offered to the Japanese nation to have more children: while the fertility rate in Japan is the recorded low in the world economies list, it may be another option in order to attract more workers from abroad.
India is investigated to be the world's third-biggest economy, with 8.17 trillion US dollars in GDP and an estimated per capita income of 5,060 US dollars. The working population of India will see a boom by accelerating its growth. The income growth rate is waited for to surpass China after 2030 due to the One-child policy of China, and the economy of India is estimated to develop by an average of 5.1 percent yearly between 2040 and 2050. India is preparing to have the greatest economy in the world and to become the most populous country by 2050 and pass China with an estimated 1.6 billion people.
The United States is going to be the world's second-richest economy among the top 10 richest countries in the world. With 22.27 trillion US dollars in Gross Domestic Product and per capita income of 55,134 US dollars. Per capita income growth for the United States is lower than other improved economies due to its already rich substructure "restricts growth". The richest country on the planet, the United States will have to struggle to be the 'second-best'.
China will take its place as the first richest country among the top 10 richest countries in the World. China is estimated to become the world's first richest and possibly the strongest economy. With 24.62 trillion US dollars in Gross Domestic Product and per capita income of 17,759 US dollars after 30 years.
The income per capita in China will be about a third of that in the United States. There is room for significantly more development. On the other hand, it will no more be the extremely populous country in the world - this may be a positive point or minus in accordance to your perspective.
The full report is consisting of interesting and surprising results. About two-thirds of the biggest economies "emerging from the market" will be: Venezuela, Mexico, Turkey and Egypt. Countries with great populations will perform very economically. Most of the rich European countries such as Switzerland, the Netherlands and Sweden will be the largest failures. China will be the greatest economy in the world within a few years.