Countries to Invest In due to Changing Global Economic Power

SFA Official
2022-06-21

As the post-pandemic recovery chugs along, the global economy is set to see major changes in the coming decades.

Most significantly, China is forecast to pass the United States to become the largest economy globally.

The world’s economic center has long been drifting from Europe and North America over to Asia. This global shift was kickstarted by lowered trade barriers and greater economic freedom, which attracted foreign direct investment (FDI).

Another major driving factor was the improvements in infrastructure and communications, and a general increase in economic complexity in the region.

How Will the Global Economy Look in 2031?

By the year 2031, there will be major changes in the global economic power rankings.

The visualization uses data from the 13th edition of World Economic League Table 2022, a forecast published by the Center for Economics and Business Research (CEBR).

Here are the countries, ranked based on forecasted economic size in 2031:

  1. China
  2. United States
  3. India
  4. Germany
  5. Japan
  6. UK
  7. France
  8. Indonesia
  9. Brazil
  10. Russia
  11. Canada
  12. South Korea
  13. Italy
  14. Australia
  15. Spain

As we said before: China will have become the world’s largest economy in terms of GDP and India will be the world’s third largest economy.

Out of the top five economies, three are located in Asia: China, India, and Japan⁠—a clear demonstration of how economic power is shifting towards large population centers in Asia.

Europe will have four countries in the top 10: Germany, the United Kingdom, France, and Italy. From South America, only Brazil appears in the top 10.

Under these projections, Russia sits outside the top 10 in 2031. Of course, it remains to be seen how crushing sanctions and global isolation will affect the economic trajectory of the country.

Now, the big question. Is it inevitable that China takes the top spot in the global economy as predicted by this forecast? The truth is that nothing is guaranteed.

Other projections have modeled reasonable alternative scenarios for China’s economy. A debt crisis, international isolation, or a shrinking population could keep China’s economy in second place for longer than expected.

P.S.

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Disclaimer: Investing carries risk. This is not financial advice. The above content should not be regarded as an offer, recommendation, or solicitation on acquiring or disposing of any financial products, any associated discussions, comments, or posts by author or other users should not be considered as such either. It is solely for general information purpose only, which does not consider your own investment objectives, financial situations or needs. TTM assumes no responsibility or warranty for the accuracy and completeness of the information, investors should do their own research and may seek professional advice before investing.

Comments

  • HiddenDragon
    2022-06-21
    HiddenDragon
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  • VestTig
    2022-06-21
    VestTig

    Nice article

  • Shiting
    2022-06-22
    Shiting

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    • SFA Official
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    2022-06-21
    cwpang
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    2022-06-21
    ratata
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  • Rajadurai
    2022-06-21
    Rajadurai
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