'Dramatic' shift in world GDP share predicted

News Article - 31 October 2008
Category: Business

Emerging economies could overtake advanced nations in terms of world GDP share by 2013, according to a new report.

PricewaterhouseCoopers (PwC) has said that the current financial turmoil may hit advanced economies harder than emerging ones, which would leave the likes of China and India in a stronger position.

Emerging economies could account for 50.2 per cent of world GDP by 2013, in terms of purchasing power parity.

The figure stood at 43.7 per cent in 2007.

"It is striking that such a significant shift in world GDP share from advanced economies to emerging economies could occur within as little as five years, and that by 2013 more than half of world GDP could come from these high growth countries," said PwC's head of macroeconomics, John Hawksworth.

Other findings in the research show that in 2013 the UK would fall behind Russia and Africa, with its share making up 2.9 per cent, down from 3.3 per cent in 2007.

Also, China could overtake the euro area to enter second place behind the USA.

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