Yahoo Finance Goldman Sachs: What will the world economy look like in 2075?
Investing.com - People are always looking to the horizon and preparing for new challenges. This trend is more relevant than ever, given the current uncertainties and the recent unanticipated economic and geopolitical changes. Against this backdrop, Goldman Sachs has attempted to predict the evolution of the global economy through 2075 in a report released Tuesday.
According to the bank, during the next decade, global growth will average just under 3% per year. This growth will gradually decline thereafter as a result of slowing labor force growth.
"Our projections imply that we have passed the high-water mark of global potential growth. Most of this projected slowdown is due to demographics. Global population growth has halved over the past 50 years."
According to the bank, slowing population growth would create less pressure on the environment but will present "a number of economic challenges," such as the rising healthcare costs of the aging population.
Otherwise, emerging countries will continue to develop and could become the world's largest economies. China, the United States, India, Indonesia, and Germany will be the most important. Other countries such as Nigeria, Pakistan, and Egypt would also join the list of the largest economies.
However, the bank believes that income inequality will continue to increase between social strata even if it decreases between countries. This could further increase social pressures.
The dollar, on the other hand, could lose its importance, as the United States will probably not be able to maintain the same economic performance as in the past. The U.S. currency is already competing with the euro and the yuan at this time as Europe and China are developing.
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