KARACHI: PricewaterhouseCoopers (PwC) expects that Pakistan will grow at a rapid pace over the next three decades, overtaking established economies such as Canada and Italy to become the world’s 16th largest economy by 2050.
The consultancy firm produced its first ‘World in 2050’ report in March 2006, which featured GDP growth predictions for 17 major economies.
Following multiple changes to the list until 2015, the edition now includes 32 countries that account for nearly 85% of global GDP, with Pakistan being one of the major developing markets.
Pakistan was rated 24th in the world in 2016, according to the second professional service, with a GDP of $988 billion PPP, according to IMF estimates. The economy is predicted to grow by more than three times in the next three decades. According to PwC, Pakistan’s GDP would reach $1.868 trillion in 2030 and $4.236 trillion in 2050.
According to PwC, “we anticipate that the global economy will double in size by 2042, growing at a 2.6 percent annual average rate between 2016 and 2050.” “Global economic development will be driven by emerging market economies, which will gradually increase their share of global GDP over time.”
Surprisingly, the consulting industry does not anticipate a major growth in the investment-to-GDP ratio during the next ten years. According to their forecasts based on IMF historical data, it will climb to 17 percent by 2025 from the current 16 percent. Another factor could be the economy’s massive size in the future.