http://www.telegraph.co.uk/business/2017/02/07/top-world-britain-outpace-g7-next-three-decades/Top of the world: Britain to outpace G7 for 'next three decades'The Telegraph wrote:Britain will grow faster than any other major advanced economy over the next three decades as the EU’s share of global output diminishes, according to PwC.
UK economic growth is predicted to outpace the US, Canada, France and Germany between 2016 and 2050, with average annual growth of 1.9pc.
This is also double the average annual pace of growth expected in Japan and Italy.
While the UK’s decision to leave the EU is expected to exert “some medium-term drag” on the economy, PwC signalled that Britain was in prime position to forge new trade ties with “faster-growing emerging economies”, which are expected to cement their status as the engines of global growth.
John Hawksworth, chief economist at PwC, said Britain’s “relatively flexible economy by European standards” was an advantage.
The share of working age Britons is forecast to be higher over the coming decades than most other G7 economies, according to the United Nations.
While these population projections were published before the UK’s decision to leave the EU, Mr Hawksworth said the UK’s “favourable demographic factors” were likely to continue.
PwC stressed that growth depended on the country “remaining open to talented people from around the world after Brexit”.
It added that “developing successful trade and investment links with faster-growing emerging economies” were “critical” if UK growth were to outpace other advanced economies and offset “probable weaker trade links with the EU after Brexit”.
PwC expects the global economy to double in size within a quarter of a century, with average annual growth of 2.6pc.
The expansion is forecast to be driven by emerging markets such as Brazil, China, India, Mexico and Russia, which are forecast to grow by 3.5pc between 2016 and 2050, compared with G7 average annual growth of 1.6pc.
China is expected to maintain its position as the world’s top economy in terms of gross domestic product (GDP) based on purchasing power parity (PPP), which adjusts for price differences and buying power in each country, while India is projected to overtake the US into second position.
The US will drop to third place in the rankings, while Indonesia and Brazil are expected to climb to fourth and fifth position respectively.
Britain is forecast to slip into tenth place, from ninth, while Italy is predicted to drop from 12th to 21st place, and Germany to ninth from fifth position.
In nominal terms, the UK is predicted to slide to ninth from fifth position over the next three decades.
PwC’s World in 2050 report said the “rise of China and India” would reduce the share of world GDP accounted for by Europe. India’s share is projected to be larger than the EU27 by 2035, with the EU’s share of the world economy (at PPPs) projected to drop from 15pc to 9pc by 2050.
“While the exact extent and timing of these shifts is subject to considerable uncertainty, the general direction of change is clear,” PwC said.
Analysis: how the world will look in 2050
The global economic order is changing.
PwC’s latest forecast for the world economy in 2050 shows the rise of emerging markets is expected to continue over the next few decades, even as questions loom over the future of trade and what a stronger dollar could mean for these countries in the next few years.
Predicting the future is not easy. The words “Brexit” and “Trump” tell you that.
But while the world is full of uncertainty, one trend is clear: populations around the world are ageing and there are fewer workers at the bottom to pay for the pensions of those retiring at the top.
The outlook is bleaker among major advanced economies, which PwC expects to grow at a “markedly slower” average rate of 1.6pc per year between now and 2050, compared with the global average of 2.6pc per year.
The weaker-than-expected recovery over the past few years does not bode well for the future, it says. The main driver of the slowdown is a downgrade of expected productivity growth in the US, with an ageing population, a “plateau of educational attainment”, and higher household and government borrowing all to blame.
Gave up trying to copy and paste the rest of the article via phone.
Good news though. Free trade deals with growing markets look like the key to making Brexit a success.
