Goldman Sachs predicts India will overtake the US to become the second largest economy in 2075, while Indonesia will jump up to the forth spot.

Goldman Sachs has just published its “Global Economics Paper: The Path to 2075 — Slower Global Growth, But Convergence Remains Intact” which reveals the organization’s projections on the global economy’s major themes and EM and DM growth to 2075.

According to Goldman Sachs, there are 4 four major themes for the global economy.

Theme #1: Slower global potential growth, led by weaker population growth.

It implies that during the next ten years, global growth will average just under 3% annually and be on a steadily falling path, mostly due to slower labor force expansion. Global population growth has decreased by half during the previous 50 years, from 2% to less than 1% annually, and is anticipated to reach nearly zero by 2075.

Theme #2: The continued convergence of the emerging markets (EM), driven by Asia’s powerhouses.

Although real GDP growth has slowed in both developed and emerging economies, relative to developed market (DM) growth, EM growth is still greater.

Therefore, China, the US, India, Indonesia, and Germany will be the world’s five largest economies in 2050 (measured in real USD) with Indonesia displacing Brazil and Russia among the largest EMs. With the right institutions and policies, Nigeria, Pakistan, and Egypt could be among the largest economies in the world by the year 2075.

Theme #3: The decade of US exceptionalism, which is unlikely to happen again.

Over the previous ten years, the US has performed relatively better than anticipated. However, history indicates that this is not likely to happen again over the following ten years. Large EM economies continue to have higher potential growth than the US, and over the next 10 years, some of the US Dollar’s exceptional strength of the past few years is expected to unwind.

Theme #4: Less global inequality, more local inequality.

Global income distribution is now more evenly distributed as a result of EM convergence during the past 20 years. While wealth disparity between countries has decreased, income inequality within countries has increased. Future globalization faces a significant difficulty as a result of this.

The rise of emerging economies like India and Indonesia in the next 10 to 50 years is arguably one of Goldman Sachs’ most noteworthy projections in this study.

The figures 1 and 2 predict the real US Dollar value of major economies through time combining Goldman Sachs’ GDP projections and long-term real exchange rate projections. These suggest that China will surpass the US economy as the largest economy in the world around 2035. This is roughly ten years later than what Goldman Sachs predicted in 2011, mostly because of the organization’s downward adjustments to Chinese potential growth.

Despite the fact that China’s growth prospects currently appear gloomy, Goldman Sachs also highlighted a number of significant factors that led them to expect China to surpass the US in the near future. Those factors are: First, China’s GDP has already cut the majority of the gap with the US GDP (from 12% of the US GDP in 2000 to just under 80% today). Second, Goldman Sachs’ updated forecasts show that potential growth in China is still much larger than in the US (4.0% vs. 1.9% for 2024–29, shown in the figure 3), despite major downward adjustments. Third, in addition to differences in prospective growth, a portion of the US Dollar’s real overvaluation compared to the Chinese Yuan is anticipated to be unwound over the next 10 to 15 years.

Goldman Sachs also projects China, the United States, India, Indonesia, and Germany are predicted to be the five largest economies in the world in 2050. Indonesia has an impressive jump in this list when displacing Brazil and Russia among the list of largest EMs over this horizon.

The US, China, and India are expected to be the three largest economies in the world in 2075, with India overtaking the US. Due to its better demographic outlook, US potential GDP growth is predicted to be significantly faster than China’s at that horizon. With the appropriate policies and institutions, economies like Nigeria, Pakistan, and Egypt could grow to be some of the largest in the world as a result of high population increase in these countries.

East Asia’s Growth Outpaces Global Average Amidst China’s Economic Challenges, Says World Bank

EU Probes Apple, Google and Meta for Potential Violations of New Digital Law

Massive Changes Coming to Google Chrome Threaten to Reshape the Modern Internet

Reddit makes a splash with spectacular stock debut

In a highly anticipated market debut, Reddit stock took off, closing its first day of trading with a staggering 48% surge from its initial public offering (IPO) price of $34 per share. The social media giant’s stock concluded the day at $50.44, propelling its market capitalization to over $8 billion.

Vietnam’s Vingroup Makes Strategic Move with $1.6 Billion Sale of Vincom Retail Stake

In a significant move in Vietnam’s corporate landscape, Vingroup, the country’s largest conglomerate, has completed the sale of a 41.5% stake and other assets in its retail arm, Vincom Retail, for a staggering $1.6 billion. This transaction ranks among the largest mergers and acquisitions (M&A) deals in Vietnam in recent years, underscoring the dynamism of the country’s economy and corporate sector.

NVIDIA and Johnson & Johnson MedTech’s AI Collaboration Revolutionizing Surgery

The integration of artificial intelligence (AI) into various facets of healthcare has revolutionized patient care, and its impact on surgery is poised to be profound. Leveraging AI’s capabilities to connect, analyze, and predict based on operating room data holds the promise of enhancing surgical efficiency and clinical decision-making. Recognizing this potential, NVIDIA has partnered with Johnson & Johnson MedTech to explore new AI capabilities within the realm of surgery, with the goal of advancing the company’s connected digital ecosystem for surgical procedures.

Alphabet-Apple Collaboration Unveiling Gemini AI for iPhone Innovation

Landmark Verdict: $60 Million Penalty Imposed on Mead Johnson in Enfamil Baby Formula Case

Devin AI: Pioneering the future as the first AI software engineer

In the fast-paced world of software development, innovation is the name of the game. Cognition, a leading tech company, has introduced a groundbreaking solution that promises to transform the industry as we know it: Devin AI, the world’s first AI software engineer. Devin AI is not just another tool in the developer’s toolbox; it’s a game-changer that leverages the power of artificial intelligence and machine learning to automate coding tasks and streamline the development process.

Job Interview Red Flags: Phrases to avoid according to a former Google recruiter

When it comes to acing a job interview, there are certain tactics that can help you stand out and impress prospective employers. From showcasing your passion for the role to demonstrating problem-solving skills, there are plenty of strategies to employ. However, it’s equally important to be mindful of phrases that could raise red flags during the interview process.

US Pushes for ByteDance to Sell TikTok, But China Likely to Refuse

The ongoing saga between the United States and ByteDance, the Chinese tech giant behind the popular social media platform TikTok, has taken another turn. With the House approving a bill requiring ByteDance to divest TikTok within roughly six months, the possibility of a forced sale or effective ban looms large.

Starbucks Ends Odyssey NFT Rewards Program, Shifting Focus to AI

In a surprising move, coffee giant Starbucks has announced the closure of its Starbucks Odyssey Beta platform, effectively ending its foray into the world of Non-Fungible Tokens (NFTs). The decision marks a significant shift in strategy for the company, as it pivots away from NFTs towards a focus on Artificial Intelligence (AI).