Author: Stephen Johnson / Source: Big Think
- The Standard Chartered Bank, a British multinational banking and financial services company, recently issued a report to clients outlining projections about the world economy up until 2030.
- The report predicts Asian economies will grow significantly in the next decade, taking seven of the top 10 spots on the list of the world’s biggest economies by 2030.
- However, the researchers formed their predictions by measuring purchasing power parity at GDP, which is an approach that not all economists would use in these kinds of projections.
China is poised to overtake the United States as the world’s top economy as early as next year, according to a new report by the Standard Chartered Bank. Its analysts calculated discovered this new status by surveying countries’ purchasing power parity (PPP) exchange rates and nominal GDP.
The shakeup will be fueled largely by a strengthening of the middle class in Asian countries, suggests the report, which was covered by MarketWatch. “The global middle class is at a tipping point,” Standard Chartered researcher Madhur Jha writes in the report. “By 2020, a majority of the world population will be classified as middle class. Asia will lead the increase in middle-class populations even as middle classes stagnate in the West.”
India is also estimated to overtake the U.S. economy by 2030, largely thanks to rapid urbanization.
“India will likely be the main mover, with its trend growth accelerating to 7.8 percent by the 2020s partly due to ongoing reforms, including the introduction of a national goods and services tax (GST) and the Indian Bankruptcy Code,” Standard Chartered said.
The researchers wrote that…
The post China will overtake the U.S. as world’s top economy in 2020, says Standard Chartered Bank appeared first on FeedBox.