Despite a projected slowdown in Chinese growth after around 2020, the global economic power shift away from the established advanced economies in North America, Western Europe, and Japan, will continue over the next 35 years, according to the latest report from PwC – The World in 2050: Will the shift in global economic power continue?
PwC economics director Chris Money said: “New Zealand’s future truly lies with China and our forecasts reinforce the importance of New Zealand’s focus on Pacific Rim trade deals, with China, Indonesia, Mexico and Russia, forecast to be amongst the fastest growing economies to 2050″.
“Currently, China is equal with the US in purchasing power parity (US$17 billion each) but by 2050, China’s GDP in purchasing power parity (PPP) terms will treble to US$60 billion, which is 25 per cent higher than the US, and more than three times the combined GDP of the EU,” said Money.
“Trade between the fastest growing countries presents real opportunities for New Zealand as a transit point for goods and services both by air and sea. Links between South America and the fast growing block of China, Indonesia and India present significant opportunities for us as a trans-shipment destination.
“The importance of New Zealand’s free trade discussions with India are underlined by this forecast as the fastest growing of our largest trading partners and set to become the second largest economy in the world by 2050,”concludes Mr Money.