The economic and financial landscape of the planet is changing at a rapid pace. This is the main reason why the top economic powers that are ruling at the moment will need to work hard to remain at the top or else, they will lose the edge they have got. The economies that are budding at a rapid pace will also give tough competition to the existing champions and would leave no stone unturned to dethrone them. Have a look at the next biggest economies of the world according to our perception.
Though China has surpassed the US in terms of PPP GDP, but the US economy is still the largest.
China will continue to grow at a rapid pace, but it won’t be able to replace the USA in terms of GDP per capita. The country needs to reform the banking system and ensure that it has a more consumer-driven society. Over the next decade, China may face the problem Japan is facing now, quick aging.
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The USA will be an economic superpower even after a decade thanks to it’s focus on services rather than manufacturing only. It will continue to reduce its reliance on exports and will lessen the dependence on global energy markets by its ability to hydraulically fracture. The country won’t be dependent on Middle Eastern stability but will continue to stand on its own.
Though India’s economic growth has been making the headlines at global forums and it is often counted among the next biggest economies of the world, it is also a known fact that India direly needs the necessary infrastructure to be a dependable economy. The country’s best bet is the young talent, and its economic prosperity will likely ride on their backs for the next few years. India is also free of the government-debt-to-GDP burden which plagues many economies of the world and gives the country the power to modify fiscal policies in order to encourage its growth. The country also needs to make an effort to improve it’s doing business ranking because when it does, it will give tough competition to other economies.
Though many economic experts have lost their confidence in Japan’s economy due to its persistent problems like aging population and heavy debts, Japan is still a strong economic power that is riding high on innovation, technology, and high exports. The government is also launching stimulus programs rapidly to ensure the growth doesn’t come to a halt.
Whether Germany will be counted among the next biggest economies or the world or not will depend heavily on whether it integrates with the European Union or not. At the moment, Germany is fueling its economic growth by tying up education, technical training, and industry. It is ensuring that the right skills are imparted to the future leaders. The big companies of the country are also owned by families and are often passed on from one generation to another rather than selling it to the one who pays the biggest dollar. One big challenge faced by the country is that it needs to maintain the current account surplus.
In essence, it can be said that though the US, China, and Japan will continue to be among the next biggest economies of the world in the next decade, Germany and India will need to work hard to retain their place in the top five because Russia, Indonesia, Brazil and Mexico are eager to dethrone them.