Kingdom to rank 13th among global economies by 2030 with China on top, says report / Foodex_saudi
The Saudi economy will be 13th in the world by 2030 as against its present 20th position, says a report on the future global economic landscape.
The report by PricewaterhouseCoopers (PWC), titled “The Long View: How will the global economic order change,” points out that the Kingdom’s GDP will increase from $1,731 billion in 2015 to $2,755 billion and $4,694 billion in 2030 and 2050 respectively.
The report expects China to be the world’s largest economy with the US trailing second. Indonesia and India are expected to be among the world’s top five economies.
The report sets out the global growth projections between 2030 and 2050 for the largest economies in the world. Ultimately, the US would continue to lose in favor of China and India and could be down to third place globally, the report forecasts.
The US economy ranks first at present, followed by the economies of China, Japan, Germany, Britain, France and India respectively.
The report has classified 32 countries using the purchasing power parity (PPP) for adjusting the price level differences across countries. The theoretic rationale for the PPP is based on market exchange rate (MER) whereby the exchange rate of a currency becomes equal to the exchange rate of another currency when their MER is equal. In other words, the PPP of a domestic currency must be equal to its PPP abroad. For example, the exchange rate of US dollar of SR 3.75 would be of an equal value if the goods purchased in US dollars in the USA are the same as the goods purchased in Saudi riyals in Saudi Arabia.