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June 2017, No. 84


Trade & Business

 

Iran among World’s Top Economies by 2050


A country with a population of around 80 million, Iran is currently one of the biggest economies of the Middle East and has a gross domestic production (GDP) of around $380 billion.


A recent study shows that Iran will be among 32 most powerful economies in the world by 2050.  

The study, titled “The long view: how will the global economic order change by 2050?” was carried out by professional services giant PwC and ranked 32 countries by their projected global gross domestic product by purchasing power parity.

PPP is used by macroeconomists to determine the economic productivity and standards of living among countries across a certain time period.

It said Iran would be the 17th most powerful economy in the world within the next three decades, adding that the country would outperform the incumbent European players like Italy, Spain and the Netherlands whose ranks would be 21st, 26th and 32nd, respectively.      

The Islamic Republic would also lead several Asian players like South Korea (18) as well as the Philippines (19) and Malaysia (24).

Iran would closely track Pakistan (16) as well as regional rivals Saudi Arabia (13) and Turkey (11). 

At the top of the list of the best performing economies by 2050 would be China which will be followed by India and the United States, as reported by The Independent. 

The biggest surprises may be Indonesia (4), Brazil (5), Russia (6) and Mexico (7) which will be ahead of the Asian giant Japan (8) and the current European powerhouse Germany (9).

In December 2016, the International Monetary Fund (IMF) said it expected Iran’s economic growth to reach as high as 6.6 percent for the Persian calendar year that ends on 20 March 2017.   

It emphasized that the higher production and exports of oil after the removal of sanctions would be particularly instrumental in boosting Iran’s economic growth that was in recession last year.

A country with a population of around 80 million, Iran is currently one of the biggest economies of the Middle East and has a gross domestic production (GDP) of around $380 billion.

The main driving force of Iran’s economic growth is exports of oil. The country is currently exporting close to 2.3 million barrels per day (mb/d) of oil and analysts are already expecting the volume to increase to as high as 2.5 mb/d. 

Based on the budget bill for the next Iranian calendar year, the country expects to sell its oil at around $50 dollars per barrel thus expecting its annual oil revenues to be around $33 billion. 

Officials in Tehran have already emphasized that serious plans have been devised to increase the country’s oil production to as high as 5 mb/d over the next few years – what is expected to eventually generate higher oil revenues and accordingly boost growth.  

Check out the ranking below (All numbers are in US dollars and at constant values (for reference, the US’s current PPP is $18.562 trillion): 

32. Netherlands — $1.496 trillion. 

31. Colombia — $2.074 trillion. 

30. Poland — $2.103 trillion. 

29. Argentina — $2.365 trillion. 

28. Australia — $2.564 trillion. 

27. South Africa — $2.570 trillion. 

26. Spain — $2.732 trillion. 

25. Thailand — $2.782 trillion. 

24. Malaysia — $2.815 trillion. 

23. Bangladesh — $3.064 trillion. 

22. Canada — $3.1 trillion. 

21. Italy — $3.115 trillion. 

20. Vietnam — $3.176 trillion. 

19. Philippines — $3.334 trillion. 

18. South Korea — $3.539 trillion. 

17. Iran — $3.900 trillion. 

16. Pakistan — $4.236 trillion. 

15. Egypt — $4.333 trillion. 

14. Nigeria — $4.348 trillion. 

13. Saudi Arabia — $4.694 trillion. 

12. France — $4.705 trillion. 

11. Turkey — $5.184 trillion. 

10. United Kingdom — $5.369 trillion. 

9. Germany — $6.138 trillion. 

8. Japan — $6.779 trillion. 

7. Mexico — $6.863 trillion. 

6. Russia — $7.131 trillion. 

5. Brazil — $7.540 trillion.

4. Indonesia — $10.502 trillion. 

3. United States — $34.102 trillion. 

2. India — $44.128 trillion. 

1. China — $58.499 trillion.         

 

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  June 2017
No. 84