Insider Monkey
25 Largest Economies in the World by 2040
Ali Hassan
10 min read

In This Article:

In this article, we will be taking a look at the 25 largest economies in the world by 2040. To skip our detailed analysis, you can go directly to see the 5 Largest Economies in the World by 2040.

Global Economic Outlook

The current scenario of the global economy doesn’t give us a clear picture of the near-term economic situation with certainty. The recent major events that led to global economic uncertainty began with the emergence of the COVID-19 pandemic, which was followed by worldwide lockdowns, supply chain distributions, international trade cut-offs, downsizing, and most importantly, a crisis in the global health sector. As we mentioned earlier, the economy seems to be in the recovery stage with global growth expected to remain steady at 3.1% in 2024 and 3.2% in 2025. 

According to research by The Goldman Sachs Group, Inc. (NYSE:GS), the world’s fastest years of economic growth have likely already passed. Population growth is weakening, climate change, and increasing geopolitical risks, among other factors will impact the global economy. However, the emerging economies and major economies in Asia are directed to keep catching up to richer countries. According to the IMF's GDP forecast for 2030, 16 Asian countries will be among the leading economies. China, India, Indonesia, and Japan will be among the top six economies by 2050 along with the US and Germany. As per The Goldman Sachs Group, Inc.’s (NYSE:GS) 2075 forecast, China will be the leading economy with India in second place, the US in third place, and Indonesia in fourth. Nigeria and Pakistan will climb up the ranks to fifth and sixth place in 2075, respectively. 

The global economy is forecasted to grow at an average of 2.8% annually between 2024 and 2029 and to gradually decline thereafter, as per The Goldman Sachs Group, Inc. (NYSE:GS). This shows a slow economic growth compared to an average growth rate of 3.6% for the 10 years before the global financial crisis and 3.2% in the decade before the COVID-19 pandemic. The reason for slow economic growth is due to the ebbing population growth rate. During the past 50 years, the global population has halved. According to UN projections, the world’s population is expected to increase by almost 2 billion in the next 30 years. This would mean that in 2050 the world’s population will reach 9.7 billion from the current population of 8 billion. The global population could peak at a forecasted 10.4 billion in the mid-2080s. Apart from the population, economists expect weakening productivity to be another key reason for slow GDP growth in the future. 

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