By 2030 developing countries that boast young populations and super-dynamic economic growth are poised to leapfrog many of the current top dogs, which are mainly developed nations grappling with ageing populations and comparatively stagnant economic growth. As a result, the make-up of the world's top 10 richest countries based on GDP at purchasing power parity (PPP) is set to change dramatically. Be prepared for a surprise as we reveal who'll be the major players in 2030, as projected by Standard Chartered.
Germany has the world's fifth largest economy as of 2019 with a GDP (PPP) of $4.5 trillion (£3.7tn), according to the International Monetary Fund (IMF). Europe's manufacturing powerhouse, the Teutonic nation is one of the world's leading exporters and service economies, but the country is set to fall down the rankings over the coming years.
The economy of Japan, which is currently the fourth biggest in the world in terms of GDP (PPP) at $5.8 trillion (£4.7tn), grew by a fairly underwhelming 1.3% in the second quarter of this year, though the expansion is nevertheless better than anticipated as domestic demand and foreign investment remained steady.
Still, the nation's economy is forecast to perform relatively poorly over the next 11 years. The culprit? An ageing population and shrinking workforce. A hefty 30% of the population will be aged 65 or over in 2030, up from just 17% in 2000. Consequently, Japan's economy is expected to be the world's ninth largest in 2030, dropping from position number four, with a GDP of $7.2 trillion (£5.8tn).
Russia's GDP (PPP) stands at $4.4 trillion (£3.6tn) in 2019. The country's economy is therefore the world's sixth biggest currently, though the nation's finances have taken a battering over the past few years due to a combination of Western sanctions, depressed commodity prices and capital flight.
By 2030 Russia's economy is set to grow to $7.9 trillion (£6.4trn) largely on the back of rising oil prices. Still, as other emerging markets flex their financial muscles, particularly fellow members of the so-called BRIC (Brazil, Russia, India and China) and CIVETS (Colombia, Indonesia, Vietnam, Egypt, Turkey and South Africa) economies, Russia is forecast to fall from sixth to eighth place in the global rankings.
During the early 2010s Egypt was mired in political instability and its economy was firmly stuck in the doldrums, but the country has bounced back spectacularly following extensive IMF-led reforms. During the past fiscal year, growth accelerated to 5.6%, the highest level since 2010, and foreign investment in the country is positively booming. It currently has a GDP (PPP) of $1.4 trillion (£1.1tn).
As a result, Egypt's economy will grow by a whopping $6.8 trillion (£5.5tn) to $8.2 trillion (£6.7tn) by 2030, buoyed on by the aforementioned foreign investment and a population that is set to increase by 30%. The nation, which has all sorts of exciting plans afoot, including a shiny new capital city, is poised to leap from the 19th to the seventh biggest economy globally, making it the highest climber by some distance.
In spite of the country's recent financial woes, its economic future looks bright. As growth picks up and the workforce expands, Standard Chartered expects the Brazilian economy to hit $8.6 trillion (£7tn) in 2030, which would make it the world's sixth largest. The nation's population is expected to reach 225 million in 2030, up from the current figure of 211 million, an increase of 6.6%.
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Turkey is predicted to mirror Egypt by 2030, with its economy expected to surge in a similar way thanks to favourable demographics and other factors including increased foreign investment. All this means that in 2030 Turkey is likely to wow with the world's fifth largest economy based on GDP (PPP) at $9.1 trillion (£7.4tn).
The Indonesian economy, which is the largest in southeast Asia, is expected to grow by a very healthy 5.2% in 2019 and 2020, rising to 5.3% during the early 2020s as domestic demand remains strong. At the current time, the country's economy is the seventh biggest in the world in terms of GDP (PPP) at $3.7 trillion (£3tn).
Despite President Trump's efforts to maintain America's dominant position in the global economy, the US will lose its pole position by 2030 as the world's richest nation based on GDP at exchange rate and will be easily overtaken by another nation too in terms of GDP (PPP) if Standard Chartered's forecast is correct. Its GDP in 2030 is forecast at $31 trillion (£25.2tn).
India's economy is poised to expand by 7% this year with a GDP (PPP) of $11.5 trillion (£9.3tn), and is predicted to increase by another 7.2% in 2020. In fact, India is expected to be the world's fastest-growing economy during the 2020s. A rising working population, combined with economic reforms and increased investments, are likely to work wonders on the nation's finances.
China overtook the USA in 2013 as the world's number one economy based on GDP (PPP). This year, the figure stands at $27.3 trillion (£22.2trn). Though the IMF has cut China's growth prospects, due to the escalating trade war with America and falling domestic demand, growth is still expected to level out at a very respectable 6% in 2019 and 2020.
Right now these 20 countries make up 80% of the world's economy
By 2030 China is likely to have cemented its position as the world's largest economy. If the experts at Standard Chartered are on the money, it's set to extend its lead significantly over the USA with a bumper GDP (PPP) of $64.2 trillion (£52.1tn), putting America's economy firmly in the shade.
Now take a look at expert predictions for the countries that will rule the world in 2050