World’s Biggest Economies, Projected by IMF
According to the latest data projections of GDP at current USD prices released by the International Monetary Fund, the USA, China, and India will be the top 3 economies in the World by 2029, followed by Germany, and Japan. The global economy is going through a paranoid shift in gravity from the West to the East’s emerging markets. India, the biggest emerging market, is attracting heavy investment in all sectors and has been surging up the chart. To illustrate this fact, it can be seen that the G7 economies in 2011 collectively had a GDP of around 2 and a half times that of the total BRICS economies (Brazil, Russia, India, and China) combined. Now just after a decade later in 2021, the figure has reduced to 1.7 times.
This trend is expected to continue and grow at an increased rate due to the strong potential of mineral extraction, conversion of fossil fuel into green energy sources as the prime energy sectors, increasing infrastructural demands in the growing economy, and healthy demand trends in emerging markets.
The top 5 economies are as follows:
USA:
According to the IMF, the USA’s Gross Domestic Product is set to grow to 34.95 trillion USD by 2028. The top-performing sectors that contribute to the GDP are cutting-edge state-of-the-art research institutions and private sector companies. The USA spends the highest portion of its GDP on Defence procurement and maintains the largest military in the whole world followed by China, Russia, and India. It also spends a considerable sum on health and public infrastructure. Although these are the positive sides, the USA has been facing an increasing public debt crisis, well over 100 percent and this has resulted in the crashing of stocks of its renowned banks. The system is standing in a unique phase as this is rarely witnessed in the country.
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China:
China is expected to grow at a huge rate and accumulate at USD 24.84 Trillion. Some reports claim that China’s GDP will overtake the US and India will overtake the US by 2050. Convergence with the US has been in reverse and the national currency was devalued in quite a substantial way after the COVID-19 pandemic took place in 2020-21. This led to a fall in the real estate market and political friction with the West and the rest of the world. Still,l it is expected that China will continue to grow at a good pace in terms of GDP. According to analysts in Goldman Sachs, “There are bright spots in the economy including investment in the electrical machinery in the manufacturing sector and an increase in making precession instruments and cars. Property and Infrastructure building can also be considered.”
India:
India is set to become the 3rd largest economy by 2028, with a nominal GDP of 6.44 trillion USD overtaking both Germany and Japan. The Make in India initiative has increased the chances of increased investment by domestic private firms in the economy giving an overall boost to the government’s plans in all, the future of growth of Indian firms is bright as both the Foreign Direct Investment and Indian Government is set to invest hugely in the market due to the international companies wanting to diversify out away from China who was their prime manufacturer before. This has resulted in a huge boom for the Indian market and economy creating jobs and employment. The GDP growth rate is set to increase at 6% per annum, one of the highest growth rates in the whole of Asia.
Germany:
Germany is set to take over Japan as the world’s 4th largest economy as the Japanese Yen has been on the losing side compared to the Euro recently. The IMF predicts that Germany’s GDP is set to increase up to $5.36 Trillion by 2028. The prime sector where the focus is to be given is the automobile industry as it needs restructuring, retooling, and retraining overall. This will give it an edge in the electric vehicles industry in the coming years as the shift from petrol-fuelled cars to electric-powered vehicles has already taken the international market by storm.
Japan :
Despite heavy fiscal support and the loosest monetary stance of any developed economy, is projected to lose points in the economic growth table prime reason being its aging population. It is set to achieve only a meager 1% growth in overall GDP thus showing the lowest in the G7 economies. At the beginning of the 21st century it was the 2nd largest economy, but now has half of that of the USA and would go to 5th or sixth position according to IMF projections in the later years.
It is being said that the days that saw only the West ruling are almost over as the new powers are coming up in the form of the European Union, China, India besides the USA. The Middle East also sees a huge growth potential. UAE, according to analysts, is expected to grow by $157.4 billion, a 29.28% jump from 2024 to 2029 reaching a whopping $685.15 Billion. It has the fourth largest economy compared to GDP in The Middle East. Its main sources of income are the Airline Industry, Oil and Petrochemicals, Real estate, and the Tourism sector.
