Archive for February 24th, 2010

24 February 2010

Russia Europe’s largest economy by 2050

New term to add to LEDC, NIC, LDC, etc. Someone recently termed Germany one of the NDCs: Newly Declining Countries. A recent report by PricewaterhouseCoopers provides support:

PricewaterhouseCooper’s head of macroeconomics, John Hawksworth, believes by 2050, Russia will be Europe’s largest economy, while China, the US and India will lead globally.

PwC predicted that Russia would become Europe’s largest economy by 2020. What are the underlying assumptions of this forecast?

In terms of purchasing power parity, which corrects for variations in price levels, Russia’s GDP is already the second largest in Europe after Germany.

Germany’s economic growth, especially given its ageing population, is projected to be less than 2pc per annum over the next 20 years, allowing Russia to catch up by 2020. The price of natural resources should remain relatively high because of demand from India and China and should support Russia’s growth. (Report by Artem Zagorodnov on Russia Now.)

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