Philippines is poised to become the world’s 18th largest economy by 2050 provided it overcomes its infrastructure deficiencies, according to a long-term projection by London-based macroeconomic research organization Capital Economics.
Countries currently classified as emerging markets (EM) will account for more than half of global economic output by 2050, a Fitch Group unit said on Wednesday, with China set to become the world’s largest economy, and the Philippines joining the top 20 in 18th place.
A Fitch Group subsidiary said in a report that global economic ratings were poised for a “big overhaul” starting in the 2030s, with several developing countries, including the Philippines, seen making advanced economies lose their money.
Capital Economics‘ Long-Term Economic Prospects Report, released last week, a copy of which was obtained by the Inquirer, projects the Philippines’ nominal gross domestic product (GDP) to rise to $4.862 trillion three decades from now, so that nominal per capita GDP will also rise to $33,650.
By 2021, Capital Economics also predicts that the Philippines will become the 18th largest economy in the world, with nominal GDP expected to rise to USD 4.86 trillion. It said the country must overcome its infrastructure problems to reach its full growth potential.
BMI’s Country & Industry Risk Research notes that EM’s share of global gross domestic product (GDP), which has been relatively stable over the last 10 years, will increase sharply on the back of expansion in China. BMI sees China overtaking the United States in the top spot in 2027 and overtaking the US in 2050.
The highly educated working age population, added Ricafort, will result in increased output, higher consumption and reduced poverty, thus supporting accelerated economic growth and development.