LONDON – China’s economy is predicted to overtake the United States (U.S.) to become the largest economy in the world in 2020. The research revealed that the leading business consultant underlines the existence of “seismic change” in global economic power.
PriceWaterhouseCoopers (PWC) also said, in his report that in 2030 there are 10 states which accompany the world economy of China, the United States (U.S.), India, Japan, Brazil, Russia, Germany, Mexico, France, and England.
The 10 countries with the largest economy today, according to the data that was launched in 2008 from the International Monetary Fund (IMF), namely the U.S., Japan, China, Germany, France, England, Italy, Russia, Spain, and Brazil.
“These projects show that China could become the world’s largest economy by 2020 and likely will be some steps taken by the U.S. in 2030,” said the head of macroeconomics at PWC, John Hawksworth, as quoted by AFP on Thursday (21/1/2010 ).
Hawksworth added that after the period of 2020, India could grow faster than China. In addition, India also will move quickly to the top ranking for gross domestic product (GDP) global. Acceleration is more because India is a country with a population that’s growing faster than China.
This report also shows, increasing the share of global GDP taken by China and India, compared with the U.S. and the EU. The proportion in 2010 would be 20 percent for the United States, 21 percent for the European Union, 13 percent for China, and five percent for India.
Nevertheless, in 2030 the percentage will change to 16 percent for the United States, 15 percent for the European Union, 19 percent for China, and nine percent for India.
Chief global economist for U.S. investment bank Goldman Sachs, Jim O’Neill predicted on last November that China will overtake the U.S. in 2027, 14 years earlier than previous predictions of Goldman Sachs in 2041.
O’Neill coined the term “BRICs” which refers to four emerging market countries like Brazil, Russia, India, and China which has formed an informal group to discuss global issues and economic policy.
Group of developing countries in the G20 then gradually take over the traditional G7 group consisting of England, Canada, France, Germany, Italy, Japan and the U.S. as the main forum of economic talks.
