We recently compiled a list of the Top 20 Largest Economies in the World by 2050 and in this article we will take a look at the country that’s expected to be the largest in 2050.
Global Economic Forecast: Emerging Markets Set to Dominate by 2050
According to a report by the Organisation for Economic Co-operation and Development (OECD) by 2050, the global population is anticipated to grow to over 9 billion, which is likely to increase pressure on natural resources essential for energy and food production. You can also take a look at the 25 Biggest Food Companies in the World by Revenue. Despite the recent recession, the world GDP is expected to almost quadruple by 2050. However, GDP growth rates in China and India are predicted to decelerate over the coming decades, whereas the African continent is forecasted to achieve the highest economic growth rate globally between 2030 and 2050. The global energy demand is also forecasted to increase by 80% however, the global energy mix is expected to remain largely unchanged, with fossil fuels still making up around 85%, renewables just over 10%, and the remainder being nuclear energy. To accommodate a growing population with evolving dietary preferences, global agricultural land is projected to expand in the coming decade to meet rising food demand, although this expansion will occur at a decreasing rate. Consequently, intense competition for land resources is expected in the decades ahead. China and India will also face substantial population aging, with China’s workforce expected to decrease by 2050. Urban areas are set to accommodate nearly 70% of the world’s population projected to reside in cities by then.
According to The World in 2050 report by PwC, China is projected to be the world’s largest economy by 2050, contributing approximately 20% of global GDP. China has already surpassed the United States to become the world’s largest economy in terms of purchasing power parity (PPP). Moreover, China is expected to emerge as the world’s largest economy before 2030, with India becoming the third-largest by 2050. Both China and India are likely to surpass the United States, which is currently the largest economy in the world. The EU’s share of the world’s GDP is projected to drop below 10%. The Emerging Seven, or E7, economies are projected to grow almost twice as fast as the advanced G7 economies due to a negative growth of -0.3% per annum on average in the working-age population of the G7 economies between 2016 and 2050. Vietnam, India, and Bangladesh are projected to be among the fastest-growing economies. While Poland is expected to be the fastest-growing EU economy. Although today’s advanced economies will maintain higher average incomes, emerging markets are set to narrow the gap significantly by 2050. This shift presents substantial opportunities for businesses willing to invest long-term in these regions, despite recent economic challenges in countries like Brazil, Nigeria, and Turkey, which still hold significant potential. For emerging markets to achieve this growth, governments must implement structural reforms to enhance macroeconomic stability, diversify economies, and strengthen political and legal institutions.
One of the Key Companies Driving Growth in Asia
The long-term economic outlook highlights the potential dominance of Asian countries. One of the biggest companies in Asia, Alibaba Group Holding Limited (NYSE:BABA), has been a key driver of economic growth in the region.
Alibaba Group Holding Limited (NYSE:BABA) specializes in e-commerce, logistics, retail, internet, and technology services. The company has over 228,000 employees and has a business presence all around the world, including the United States, the United Kingdom, Singapore, and various European and Asian nations. Alibaba Group Holding Limited (NYSE:BABA) operates a range of online marketplaces and offers logistic services as well as online payment services. The company also provides comprehensive cloud services and has a significant presence in digital media and entertainment.
On May 14, Alibaba Group Holding Limited (NYSE:BABA) reported that its revenue increased by 8% year on year to $267.34 billion. Digital Commerce revenue increased by 45% and order volume grew 20% year over year due to a focus on expanding cross-border retail operations and enhancing the consumer experience. The company’s Public Cloud Offerings revenue increased double-digit whereas AI-related revenue increased triple-digit year over year. Alibaba Group Holding Limited (NYSE:BABA) repurchased 1.25 billion shares for $12.5 billion and outstanding shares decreased by 5.1% in fiscal year 2024.
Alibaba Group Holding Limited (NYSE:BABA) is also expanding in the luxury retail market. In May, the group announced a partnership with LVMH Moët Hennessy – Louis Vuitton, Société Européenne (OTC:LVMHF) to enhance the luxury retail experience in China by integrating its Cloud generative AI to create innovative applications and services to enhance its offerings. LVMH Moët Hennessy – Louis Vuitton, Société Européenne (OTC:LVMHF) has successfully introduced around 30 maisons who are using Alibaba’s digital capabilities for engaging experiences such as 3D product displays, virtual try-on, and livestreaming. Commenting on the event Eddie Wu, Chief Executive Officer of Alibaba Group, said:
“Alibaba is pleased to enable a transformation of the high-end consumption experience with retail leaders like LVMH through our world-class technologies in cloud computing and AI. This comprehensive partnership has elevated the retail experience for LVMH’s customers worldwide, including China-based consumers on Tmall. We look forward to continuing to build on the strong partnership and innovation journey with LVMH.”
The global economic landscape is going through a significant transformation, driven by the rapid growth of emerging economies and the decline of developed economies. Despite the current economic hurdles emerging markets present opportunities for investment and expansion, with that in context let’s look at the 20 largest economies in the world by 2050.
An expansive view of the cityscape, showing the impact of the company’s activities in China.
Our Methodology
To compile our list of the 20 largest economies in the world by 2050, we consulted ‘Economics in the Year 2100’ by Fathom. It provides data for the estimated percentage share of countries in the global GDP in 2100. It also reports the GDP PPP of the top ten economies. We utilized the data for the GDP PPP value of the top countries and percentage share to calculate the total global GDP value in 2050. Our calculation yielded that the global GDP is projected to be approximately $224.96 trillion by 2050. After calculating the global GDP in US dollars, we estimated the GDP PPP for the remaining countries to provide insight into their projected values. Our list ranks the 20 largest economies in the world by 2050 in ascending order of their GDP. We also used the population projections for 2050, by the United Nations.
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The Top Economy in the World by 2050
1. China
GDP Forecast (2050): 42.96 Trillion
Estimated Share in the Global GDP (2050): 19.10%
Population Forecast (2050): 1.31 Billion
China’s economic miracle is indeed one of the most successful developments in middle-income countries. China is forecasted to be the largest economy in the world by 2050. China’s GDP is expected to reach a staggering $42.96 trillion and will command a 19.10% share of the global economy by 2050. China has already surpassed the United States to become the world’s largest economy in terms of purchasing power parity (PPP). Moreover, China is expected to emerge as the world’s largest economy before 2030, and its population is projected to be 1.31 billion by 2050.
Curious to learn about which other countries will have the largest economies in the world by 2050? Check out our report on the Top 20 Largest Economies in the World by 2050.
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