partner perspectives

Jan 15, 2019 | 07:00 GMT

2 mins read

Charting the World's Biggest Economies in 2030

Artist's graffiti in Riyadh alludes to Saudi Arabia's to Vision 2030, the ambitious modernization program put forward by Crown Prince Mohammad Bin Salman to diversify the Saudi economy and to liberalize its society.
(SEAN GALLUP/Getty Images)
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By Jeff Desjardins for Visual Capitalist

Today's emerging markets are tomorrow's powerhouses, according to a recent forecast (external site) from Standard Chartered, a multinational bank headquartered in London.

The bank sees developing economies like Indonesia, Turkey, Brazil, and Egypt all moving up the ladder — and by 2030, it estimates that seven of the world's largest 10 economies by GDP (PPP) will be located in emerging markets. 

(Visual Capitalist/IMF)

Comparing 2017 to 2030

To create some additional context, we've compared these projections to the IMF's most recent data on GDP (PPP) for 2017. We've also added in potential percentage change for each country, if comparing these two data sets directly.

Here's how the numbers change:

(Visual Capitalist/IMF)

Possibly the biggest surprise on the list is Egypt, a country that Standard Chartered sees growing at a torrid pace over this timeframe.

If comparing using the 2017 IMF figures, the difference between the two numbers is an astonishing 583 percent. This makes such a projection quite ambitious, especially considering that organizations such as the IMF see Egypt averaging closer to 8 percent in annual GDP growth (PPP) over the next few years.

The Ascent of Emerging Markets

Egypt aside, it's likely that the ascent of emerging markets will continue to be a theme in future projections by other banks and international organizations.

By 2030, India will be the second largest economy in PPP terms according to many different models — and by then, it will also be the most populous country in the world as well. (It's expected to pass China in 2026.)

With the divide between emerging and developed economies closing at a seemingly faster rate than ever before, this should be seen as an interesting opportunity for all investors taking a long-term view.

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