PriceWaterhouseCoopers (PwC) released on February 7^th., a new report setting out long-term GDP projections for 32 of the largest economies in the world over the period to 2050.

Despite current economic recession, PwC forecasts Brazil to be the 5^th largest global economy by 2050, two positions ahead of current, behind China, India, United States and Indonesia.

The report, called “The long view: how will the global economic order change by 2050?” indicates global economic growth will be driven largely by emerging markets and developing countries, with the E7 economies (Brazil, China, India, Indonesia, Mexico, Russia and Turkey) growing at an annual average rate of almost 3.5 percent over the next 34 years, compared to just 1.6 percent for the developed G7 nations (Canada, France, Germany, Italy, Japan, United Kingdom and United States).

PwC report considers GDP ranking based on purchasing power parity (PPP).

The current underperformance of Brazilian economy is mentioned in the study, with an annual average growth rate of 1.5 percent between 2016 and 2020. But in the three following decades a new scenario emerges, with growth rates varying from 2.5 to 3.0 percent in the period 2030-2050.

PwC expects Brazil’s GDP to expand from US$ 3.1 trillion to US$ 7.5 trillion in the same period, leading the country to surpass Germany, Japan and Russia over the next 34 years.

 

Source: O Estado de S. Paulo, February 7th 2017