Forget France, India will replace Japan to become the world’s 3rd biggest economy by 2030: Report

1-Oct-2018

India will overtake Japan to become the world’s third-biggest economy by 2030, according to a recent report by the HSBC Holdings Plc, which conducted a study of total 75 nations to understand global growth. China will clinch the top spot from the United States to become the world’s largest economy at $26 trillion, way higher than the $14.1 trillion economy it is today, the study found.

The report, shared with Bloomberg, says India will outclass Japan to become the third biggest contributor to the world’s economy. Earlier this year, India edged past France and snatched the tag of the world’s sixth-largest economy, as per a World Bank report. India’s gross domestic product (GDP) stood at $2.597 trillion at the end of last year while the French economy was valued at $2.582 trillion.

Against US President Donald Trump’s claims that China has lost track and will not be able to dethrone the US any time soon, the HSBC report says the US GDP rise will be slower compared to China. The US would also see growth touching the $25-trillion mark by 2030 but the pace of development would be slower than China.

The report also says the “global output could be 40 per cent higher than in 2017 as world growth of just below 3 per cent looks sustainable”. Also, emerging markets would play a major role in countries growth.

The ageing population of countries like Japan and Australia and Norway would become a major hurdle in their progress. “Austria and Norway will fall out of the top 30 due in part to their small, ageing populations Bangladesh will rise 16 positions to 26, while the Philippines will climb 11 slots to 27,” says the report.

With advancement in technology and stellar growth, China will have lesser number of working age people than Africa, says the report. As per the latest estimates of the World Bank, the US remains the world’s largest economy with a GDP of $19.39 trillion, followed by China ($12.23 trillion), Japan ($4.87 trillion), Germany ($3.67 trillion) and the United Kingdom ($2.62 trillion).

Source: BUSINESS TODAY