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Vietnam Today

Vietnam's GDP may rank 22nd highest by 2050

Released at: 13:54, 14/02/2015

Vietnam's GDP may rank 22nd highest by 2050

PwC releases report on global GDP rankings and future predictions.

by Minh Tuyet

Vietnam’s GDP in 2014 was ranked 32nd in the world, at $509 billion using purchasing power parity (PPP) calculations, according to a recent report from PwC. It also predicts that Vietnam’s GDP will rank 22nd by 2050.

It is possible that Vietnam could be at a higher rank under PPP calculations because it records significant growth. Along with Vietnam, Nigeria may also see the highest average GDP growth from now until 2050, of about 5.3 per cent, according to the report.

All are simply predictions, of course, and Vietnam needs stronger macro economic policies to turn it into reality, PwC emphasized. Factors that may prove troublesome for Vietnam, the World Bank noted when evaluating its economy in 2014, include low domestic demand, the shortage of good infrastructure, the role of State-owned enterprises, and slow improvements to the banking system.

In PwC’s rankings, with PPP calculations, China is the biggest economy at the moment and will dominate the top position until 2050. India's GDP will be lager than the US at that time.

“New emerging economies such as Indonesia, Brazil and Mexico have the potential to have stronger GDP than the UK and France by 2030,” said Mr. John Hawksworth, head of the economic experts at PwC.

He also predicts that Indonesia could rank in 4th position by 2050 if the country maintains its friendly policies and growth,

Regarding Japan, he said that it was predicted to see the slowest growth, with declining population numbers being one factor. Although Japan's GDP ranked 4th in 2014, it could actually be in 7th place, the report showed. 

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