- China to overtake US as world’s largest economy by 2050, report says
- Climate catastrophe, populist nationalists in power risk to projections
ISLAMABAD: Pakistan could be the sixth largest economy in the world by 2075, according to a report compiled by renowned US investment banking firm Goldman Sachs earlier this week.
Titled ‘The Path to 75’, the research report predicts the state of the global economy in the decades to come and goes as far as 2075.
According to the report, China will dethrone the US in 2050 to become the largest economy in the world. However, by 2075, the report predicts the largest economies in the world would be China, India, the US, Indonesia, Nigeria and Pakistan.
“By 2075, with the appropriate policies and institutions, Nigeria, Pakistan and Egypt could be among the world’s largest economies,” it stated. The prediction regarding Pakistan’s growth was made due to the country’s population growth in the years to come.
The report warned, however, that climate catastrophes and populist leaders were risks to its projections.
It added that populist nationalists in power may lead to increased protectionism that could potentially result in the reversal of globalization which could increase income inequality across countries.
Furthermore, Goldman Sachs predicted that global growth will average just under 3 percent a year over the next decade, down from 3.6 percent in the decade before the financial crisis. The report said that global growth would be on a gradually declining path afterwards, reflecting a slowing of the labor force growth.
In another key projection, the report said that emerging markets would continue to converge with industrial nations as China, the US, India, Indonesia and Germany top the league table of the largest economies when measured in dollars.
Nigeria, Pakistan and Egypt could also be among the biggest, it added.( Arab News)