According to Citigroup’s chief economist Willem Buiter, the US will drop from the largest to the third largest economy by 2050.
“We expect strong growth in the world economy until 2050, with average real GDP growth rates of 4.6 percent per annum until 2030 and 3.8 percent per annum between 2030 and 2050,” Buiter wrote in a market research.
“As a result, world GDP should rise in real PPP-adjusted terms from $72 trillion in 2010 to $380 trillion dollars in 2050,” he wrote.
As the world watches oil prices rise sharply amid unrest in the Middle East, Buiter’s analysis of the world’s long-term prospects offer some hope that better times are ahead but if he is right power will shift from the West to the East very quickly.
“China should overtake the US to become the largest economy in the world by 2020, then be overtaken by India by 2050,” he predicted.
As countries become more democratic and capitalistic, they will only grow larger while our own country seems to be heading toward a more socialistic fate with rising taxes and more governmental regulations.
With the world becoming more global, look for entrepreneurs to seek places outside of less friendly business environments, like the US is becoming, and tend to move towards more developing freer countries.