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Wednesday, 8 February 2017

PwC says Egypt’s economy to grow past Canada’s by 2050

Can Egypt’s economy really surpass Canada’s by 2050? Yes, says PwC: Emerging economies could be twice the size of developed markets by 2050, growing to make up almost 50% of world GDP, according to a PricewaterhouseCoopers report (paywall) which is receiving wide coverage. “By 2050, emerging economies such as Mexico and Indonesia are likely to be larger than the UK and France, while Pakistan and Egypt could overtake Italy and Canada,” the report notes, according to the Financial Post, which views the suggestion as “brave” and “incredulous.” The results, which are based on gross domestic product purchasing power parity (PPP) terms, also project that India will replace the United States as the world’s second largest economy after China by 2050, reports. PwC expects the E-7 emerging markets of Brazil, China, India, Indonesia, Mexico, Russia and Turkey to grow at an average rate of almost 3.5% over the next 34 years. The E-7 is projected to account for about 50% of world GDP by 2050, up from a current 37%. The report cautions that this will be contingent on “[implementing] structural reforms to improve macroeconomic stability, diversify their economies away from undue reliance on natural resources (where this is currently the case), and develop more efficient political and legal institutions.”

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