Global economic growth is expected to decline over the next five years, due to uncertainty dominating markets and trade tensions.
Amid those tensions, Bloomberg envisioned the top 20 countries to drive global economic growth by 2024, relying on IMF and PPP. This is to determine the factors that will lead the growth, explaining that Saudi Arabia is on that list.
China’s economy will be the largest contributor to global economic growth in five years, although its contribution to this growth is expected to decline from 32.7% in 2018-2019 to 28.3% by 2024— a relatively steep 4.4 percentage point reduction, Bloomberg’s report showed.
Bloomberg explained that the US economy, which contributes most to the growth of the global economy, will fall to third place after India. The US contribution to global economic growth will decline from 13.8% currently to 9.2% in 2024, while China’s contribution to global economic growth is expected to reach 15.5%.
Indonesia will remain in the fourth place with a contribution of 3.7%, compared to 3.9% in 2019. Britain is expected to drop from the ninth to the 13th place due to the repercussions of the exit from the EU. Russia’s contribution to global economic growth is expected to continue at 2% after five years, but this will move Japan from that position it currently occupies to the ninth. Brazil is expected to rank sixth from the 11th place, and Germany is expected to rank seventh with a contribution of 1.6%.
Bloomberg’s report mentioned that the remaining G20 countries that will lead growth in five years include Saudi Arabia, Turkey, Mexico, and Pakistan, while Spain, Poland, Canada and Vietnam drop out of the first 20 list.