China 'to dwarf
G7 states by 2050'
China's economy is projected to grow so fast that it could outstrip
all developed nations by 2050, a report by Pricewaterhouse
says.
The Asian giant's economy is set to double in size between 2005 and
2050, according to the report.
As with other developing countries, a key driver for China's rapid
growth is its younger, cheaper workforce, it argues.
India, meanwhile, is expected to be the world's fastest-growing
economy.
China's boom
PwC is basing its analysis on forecasts for economic growth on the
basis of purchasing power parity (PPP).
This figure defines the size of an economy by adjusting for local
costs.
While China's economy is currently 18% the size of the US's in
dollar terms, it is 76% as big on a PPP basis.
By 2050, PwC believes, it could be 43% bigger than the US by PPP -
although it would still lag when measured in terms of dollar
size.
Also on a PPP basis, PwC says the German, UK and French economies
could end up smaller than Mexico's economy and similar in size to
that of Russia.
Both Japan and Germany whose economies stand in second and third
place after the US, are expected to be surpassed by developing
countries India and Brazil by 2050.