China and India to become biggest economies by 2050

According to a study just released by Price Waterhouse Coopers, China and India will become the two biggest economies by 2050. This is no different in comparison to their previous study from 2006, except that the global recession of the past two years have accelerated the pace with which the emerging economies are catching up with the Western economies. According to PWC, by 2050 there will only be two EUropean countries left in the top 10.

(PWC:) "This changing world order poses both challenges and opportunities for businesses in the current advanced economies. On the one hand, competition from emerging market multinationals will increase steadily over time and the latter will move up the value chain in manufacturing and some services (including financial services given the weakness of the Western banking system after the crisis).

At the same time, rapid growth in consumer markets in the major emerging economies associated with a fast growing middle class will provide great new opportunities for Western companies that can establish themselves in these markets. These will be highly competitive, so this is not an easy option – it requires long term investment – but without it Western companies will increasingly be playing in the slow lane of history if they continue to focus on markets in North America and Western Europe."

Click here for full access to the report.