helicopter view.

06 Sep, 2017

The Long View: How Will The Global Economic Order Change by 2050?

The Long View: How Will The Global Economic Order Change by 2050?

We are not claiming to be able to make precise forecasts of GDP in 2050, which is clearly not possible looking that far ahead, but we do believe it is possible to trace out the broad shape of economic power shifts over this period.

7 key points

1. The world economy could be more than double in size by 2050 with average annual global economic growth around 2.6%, due to continued technology-driven productivity improvements, assuming growth- friendly policies and no global catastrophes.

2. The shifts in global economic power we have seen since 2000 could continue in most cases in future decades.

3. China and India are projected to continue their current strong growth rates to at least 2020, before slowing down progressively in later decades as they mature (as happened to Japan, South Korea and other earlier emerging economies in previous decades).

4. Emerging economies will dominate the list of the world’s 10 largest economies and increase their share of world GDP to almost 50% by 2050.

5. The E7 are projected to be significantly larger than the G7.

6. Population growth will support growth in most emerging markets, but ageing populations could be a drag on growth in advanced economies and emerging markets like China and Russia (unless people work for longer).

7. Average incomes are likely to remain lower in emerging markets than the G7 even in 2050.

Read also: In a Half Way Through 2017, Top 3 Economic predictions for 2017

Read about M&A: Mandate F. A. Q., DD Check List

Our suggestions: 20 Must-Read Books

More about raising capital: Mezzanine financing, Equity financing, Debt financing, Investopedia: What is Private Equity?, What is The Difference Between Private Equity and Venture Capital?

Company Valuation Methods: Part1, Part2, Part3, Part4, Part5, Part6, Part7, Part8

Some strategies of raising capital: Bringing Your Company Public, Exploring Alternative Capital-Raising Strategies, Refinancing and Minority Equity as Partial Exit Strategies, 5 Alternatives To IPOs, How to Raise Capital For a Company in Financial Troubles, 7 Private Equity Strategies, Why Successful Business Owners Sell Out, The Six Types of Successful Acquisitions, Race to Become a Global Player, Refinancing and Minority Equity as Partial Exit Strategies, Guide To Equity Release Or «Cash-Out»

blog picture

24 Nov, 2021

Spain extends foreign takeover curbs to help aid recovery

Spain on Tuesday approved a year-long extension, until the end of 2022, to restrictions on foreign takeovers of Spanish companies it regards as strategic....

read more
blog picture

08 Nov, 2021

China: What is Evergrande and is it too big to fail?

Global financial markets have been on high alert as cash-strapped Chinese property giant Evergrande faces several key tests in the coming days....

read more