KARACHI: In its recent analysis, PricewaterhouseCoopers (PwC) predicts that Pakistan will achieve impressive growth rates over the next three decades, overtaking developed nations like Canada and Italy to become the world’s 16th largest economy by 2050.
In March 2006, the consultancy company released its first ‘World in 2050’ report, which included projections for possible GDP growth for 17 major economies.
After several modifications to the list till 2015, the edition presently contains 32 nations that account for about 85 percent of the Gdp, with Pakistan being one of the major developing markets.
According to the worldwide second professional service, Pakistan was ranked 24th in 2016 with a GDP of $988 billion PPP, based on IMF estimates. Within the next three decades, the economy is expected to rise by more than three times. Pakistan’s GDP is expected to reach $1.868 trillion in 2030 and $4.236 trillion in 2050, according to PwC.
According to a PwC research, Pakistan’s average population growth rate will be 1.4 percent, average annual real growth per capita would be 2.9 percent, and average annual GDP growth in home currency will be 4.4 percent over the next 35 years.
“We estimate that the world economy will double in size by 2042, rising at a 2.6 percent annual average pace between 2016 and 2050,” according to PwC. “Emerging market economies will drive global economic growth, progressively increasing their proportion of global GDP over time.”
Surprisingly, the consultancy business does not expect a significant increase in the investment to GDP ratio in the next ten years. According to their predictions based on historical data from the IMF, it would rise to 17% by 2025 from the present 16%. Another cause might be the enormous scale of the economy in the future.
