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Bloomberg NewsThe Group of Seven economies will be surpassed in size by the largest emerging markets in just over two decades as the financial crisis accelerates the shift of power in the global economy, PricewaterhouseCoopers LLP said.
The combined gross domestic product of the seven biggest developing economies will exceed that of the G-7, the world’s largest industrialized markets, in 2032 using projected market exchange rates, the company said in a report released in London today. China will overtake the U.S. as the world’s largest economy also in that year, it said.
Emerging markets have been leading the world out of the recession triggered by the banking crisis in developed nations, with China replacing Japan as the world’s second-largest economy last year. The report adds to forecasts saying that developing nations will propel the world economy in coming decades, driven by growth in China and India.
“This renewed dominance of China and India, with their much larger populations, is a return to the historical norm prior to the Industrial Revolution of the late 18th and 19th Centuries,” economists John Hawksworth and Anmol Tiwari said in the report. “That caused a shift in global economic power to Western Europe and the U.S. -- this temporary shift in power is now going into reverse.”
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http://www.bloomberg.com/news/2011-01-07/g-7-economy-will-be-overtaken-by-emerging-markets-in-two-decades-pwc-says.html
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