Mexico will be the 7th biggest economy in 2050

Mexico will be the 7th biggest economy in 2050

Feb 14, 2017

Mexico will be the seventh biggest global economy for the year 2050, according to the multinational professional services network Priceswaterhoouse Coopers (PWC), the analysis concludes that the emergent markets will dominate numerically the 10 main places of global economy which will be China, India, USA, Indonesia, Brazil, Russia, Mexico, Japan, Germany and the United Kingdom.

Mexico could be bigger than the UK and Germany for 2050 in terms of Acquisitive Power according to a metric which adjusts the differences of the price levels among countries and as a result, six of the seven biggest economies of the world will be emergent markets in 2050 while the USA would fall to the third place in the global classifications of Gross National Product (GNP).

According to economic projections for Brazil, China, India, Indonesia, Mexico, Russia and Turkey would be growing at an annual rate of 3.5% the next 34 years, whereas, advanced nations growth (such as  Canada, France, Germany, Italy, USA, UK and Japan will barely grow at a 1.6% rate according to the analysis by PWC.

The USA and the European countries will gradually lose their dominance when facing the economic boost of such countries as China and India as well as other emergent markets, according to PWC, in a document where they also identify the biggest challenges to keep economic growth steady and remarks the relevance of avoiding a fall in protectionism, because “History suggests that it would be bad for long term economic growth”.

It also entails the necessity for those countries political leadership to ensure equal sharing of globalization potential benefits among their population and proposes to develop new “green technologies” aiming to guarantee that long term global growth will be environmentally sustainable.

PWC’s report also recognizes that emergent markets will become less attractive as low cost platforms for manufacture production but will enter a phase    where they are more attractive as consumers markets and for business: “International corporations need strategies which can be flexible enough to adapt themselves to clients’ preferences and to the rapidly evolving dynamics of the local markets”, the analysis explained.

Furthermore –added PWC study- since emergent markets might be volatile, international investors also need to be patient enough to sort out the short term economic and political cycles in those countries, according to PWC global projections, the world economy might double (or more) thanks to productivity improvements propelled by technology.

(Source: Notimex)

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