KUALA LUMPUR -- China could overtake the United States by 2025 to be the world’s largest economy and is anticipated to grow to about 130% the size of the United States by 2050, said Pricewaterhouse Coopers LLP.
Its head of macroeconomics John Hawksworth said the global centre of economic gravity was already shifting to China, India and other large emerging economies and this process had a lot further to run.
Apart from China, he said the fastest growing economy could be Vietnam, with a potential growth rate of almost 10% per annum in real dollar terms that could push it to about 70% of the UK economy by 2050.
In the report, entitled “The World in 2050: Beyond the BRICs (Brazil, Russia, India and China)”, PwC said it was still upbeat about China, India, Brazil, Mexico, Russia, Indonesia and Turkey.
However, for the first time, the report looked at an additional 13 emerging economies including Malaysia that had the potential to grow significantly faster than the Organisation for Economic Cooperation and Development (OECD) countries.
As for Malaysia, PwC Malaysia managing director Chin Kwai Fatt said the country’s challenge would be to remain relevant and competitive against its neighbouring countries.
He said the survey showed that by 2050, Malaysia’s gross domestic product would grow at 5.8% per annum.
“Malaysia should capitalise on its abundant resources -- from real estate to palm plantation harvests -- to supply the region’s burgeoning industrial and consumer markets,” he added.
Chin said Malaysia would have to speed up the development of its people, focusing on upgrading the quality of its human capital, growing a culture of innovation and equipping the workforce with the necessary knowledge, technology and mindset.