New data shows U.S., Euro economies will slow as BRICs grow in the next 15 years
According to newly released data by the U.S. Department of Agriculture, some of today’s strongest economies – the U.S., U.K., France, and Germany – will experience a significant slow down in the next 15 years as the BRIC countries – Brazil, Russia, India, and China – continue to close the gap.
The U.S., the current world economic leader, will just narrowly hold the top spot with a projected GDP of $24.8 trillion in annual output by 2030. Meanwhile, China’s GDP is expected to more than double its size to reach $22.2 trillion in 15 years’ time.
Watch out for India
The steadily narrowing gap between the world’s two strongest economic powerhouses — the U.S. and China — is no huge surprise. What is more interesting is India’s rapid growth: Currently ranked 10th by the IMF World Economic Outlook, India is projected to overtake Brazil, the U.K., France, Germany and Japan to become the world’s third largest economy thanks to several factors, including declining inflation, lower oil prices, and fiscal policy reforms.
While the USDA is not the most commonly used data for global economic rankings, the trends it predicts are consistent with those of the International Monetary Fund (IMF), which projects its economic outlook every two years.
And though it’s hard to predict definitively what the world’s economic order will look like in another 15 years, IMF data since 2011 has consistently shown that BRICs are growing while the top European economies slow down. If the USDA’s 15-year projection is correct, 2030 may be the United States’ last year as the world’s largest economy.
Bottom line: Emerging markets are gaining ground. With such rapid growth, these economies will continue to attract attention from investors, incubators, and global companies seeking innovation and market share — and soon, everyone else.
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