According to the latest report by PriceWaterHouseCoopers, if Nigeria, Indonesia and Mexico are able to diversify their economies, build institutions to global standards and sustain growth friendly policies, their economies could rank among top 10 economies by 2050.
PwC Nigeria’s Chief Economist, Andrew S. Nevin who co-authored the report titled ‘The World in 2050: Will the shift in global economic power continue?’ said “Over the past decade, Nigeria has boasted superior economic growth and, with the right reforms and investments, Nigeria could become one of the world’s leading economies by 2030, with further progress by 2050. Nigeria’s potential advantages for future growth include a large consumer market, a strategic geographic location, and a young and highly entrepreneurial population.
“However, at the same time, we are all aware of the significant headwinds created by the rapid drop in the oil price, putting pressure on the fiscal and monetary systems, as well as reducing economic growth in the short term.
“To achieve its long-term economic potential, Nigeria will need to manage the oil price decline effectively at all levels of government and create a sustainable platform for diversification into the sectors that we know will drive the economy in the future – including power, agriculture, manufacturing, telecoms, hospitality and real estate.
“Beyond Nigeria, we project that China will be the largest economy by 2030 on any measure. However, we also expect its growth rate to slow markedly after around 2020 as its population ages, its high investment rate runs into diminishing marginal returns and it needs to rely more on innovation than copying to boost productivity.
“Eventual reversion to the global average has been common for past high growth economies such as Japan and South Korea and we expect China to follow suit.”