Growing importance of major Asian economies to continue through 2018 and beyond

27 Dec 2017

The growing importance of Asia's major economies will continue through 2018 and beyond, according to figures that show the region dominating in terms of size in just over a decade.

According to the report by the Centre for Economics and Business Research in London India will pull ahead of UK and France next year to become the world's fifth-biggest economy in dollar terms and will advance to displace Germany to take the third place by 2027.

Three of the four largest economies in 2032 will be Asian, China, India and Japan. By the time China wil also have overtaken the US to the No 1 spot. India's advance would not stop there, according to the CEBR, which sees it taking the top place in the second half of the century.

The trend would see South Korea and Indonesia by 2032 enter the top 10, supplanting the Group of Seven nations of Italy and Canada.

Accoding to Oliver Kolodseike, the center's senior economist and report co-author, "The interesting trend emerging is that by 2032 five of the 10 largest economies will be in Asia while European economies are falling down the ranking and the USA loses its top spot."

The report also concludes that in 2020, Britain will bounce back to overtake France, should Brexit effects become less than feared.

"Technology and urbanisation will be important factors transforming the world economy over the next 15 years," Kolodseike added.