PwC predict dramatic economic growth

Vietnam will be the 20th largest economy with GDP of USD3.17trn by 2050, according to a recent report by the business consultancy firm PricewaterhouseCoopers.

Vietnam will be the 20th largest economy with GDP of USD3.17trn by 2050, according to a recent report by the business consultancy firm PricewaterhouseCoopers (PwC).

In their report, titled The World in 2050 - The long view: how will the global economic order change by 2050?, Vietnam, India and Bangladesh would be three of the world's fastest growing economies with annual GDP growth of 5%.

In purchasing power parity terms (PPP), Vietnam's GDP is predicted to reach USD1.30trn by 2030 and USD3.17trn by 2050.

 

Vietnam's GDP is predicted to reach USD1.30trn by 2030

PwC predicted that world economy will roughly double in size by 2042, mostly driven by emerging economies and developing countries. John Hawksworth, chief economist of PwC, said the world would continue to see shift in global economic power away from established advanced economies towards emerging economies in Asia and elsewhere. The E7 could comprise almost 50% of world GDP by 2050, while the G7's share declines to only just over 20%.

By 2050, the GDP of Indonesia and Mexico can be larger than Japan, Germany, France and the UK in PPP terms while Turkey could surpass Italy.

Dinh Thi Quynh Van, head of PwC Vietnam, said in their reports from two years ago, PwC had predicted that Vietnam would be the 22nd largest economy in 2050. In the recent report, Vietnam's predicted ranking had risen to the 20th. But the world economy may face more shocking events like the Brexit from now until 2050.

"In order to succeed in this volatile stage, Vietnam's growth needs to be based on sustainable economic restructuring and a better education system in order to have more skilled workforce who will contribute to the economic growth," she said.

According to PwC, the annual global economic growth would be 3.5% over the next 4 years and slow down to 2.4% for 2041-2050 because of the decline in working-age populations in advanced economies. In addition, the emerging markets would also mature at that time and wouldn't need fast economic growth.

Emerging economies need suitable policies to boost start-ups, creativity and offer a stable and safe business environment.

As Vietnam depends greatly on exports and the global trade is slowing down, it needs to diversify the economy quickly to gain stable economic growth, Van said. Vietnam must quickly carry out institutional reform.