Sri Lanka has been named as the only Asian country which is expected to be among the top five countries by 2050 in terms of nominal Gross Domestic Product (GDP) per capita, according to a recently released macro-economic forecast by The Economist Intelligence Unit (EIU).
Accordingly, Sri Lanka has been placed fifth with an expected GDP per capita of US$ 65,910 preceded by Sweden (US$ 174,995), Germany (US$ 156,940), Italy (US$ 102,323), and Spain (US$ 82,547).
The report is titled ‘Long-term macroeconomic forecasts: Key trends to 2050’.
GDP per-capita is a measure of the total output of a country that takes the GDP and divides it by the number of people in the country. The per capita GDP is especially useful when comparing one country to another because it shows the relative performance of the countries. A rise in per capita GDP signals growth in the economy and tends to translate as an increase in productivity.
The GDP is one of the primary indicators of a country’s economic performance. It is calculated by either adding up everyone’s income during the period or by adding the value of all final goods and services produced in the country during the year. Per capita GDP is sometimes used as an indicator of standard of living as well, with higher per capita GDP being interpreted as having a higher standard of living.
The report which forecasts the economic performances of various countries worldwide in the coming few decades, stated that the Asian economies increased their share of contribution to the global GDP from 26% in the year 2000 to 32% in 2014.
“Our extended long-term forecasts suggest that Asia’s rise will continue up to 2050—not quite at the same pace, but by 2050 it will account for 53% of global GDP,” the report said.
The report also mentioned about the two emerging Asian powerhouses, India and China, predicting that both countries would be among the top three economies along with the US by 2030. “Such will be the growth of the two latter countries (China and India), in particular, that by 2050 they will each be richer than the next five (Indonesia, Germany, Japan, Brazil, and the UK) put together,” the report added.
The report added that both countries would play crucial roles in addressing global issues such as climate change, international security and global economic governance. “In the medium term, this will require the world’s existing powers—notably the US—to let India, and especially China, play a greater role on the world stage and adapt international institutions to allow them to exert greater influence,” it added.
The EIU report could be viewed/downloaded via this link.