Goldman Sachs Group Inc. economists tried to predict the trajectory of the world economy until 2075, Bloomberg reported.
Two decades after they laid out their famous long-term growth forecasts for the BRICS economies, the economists, led by Jan Hatzius, have expanded their forecasts to include 104 countries over the next fifty years.
According to the, global growth will average just under 3 percent a year over the next decade, up from 3.6 percent in the decade before the financial crisis, and will gradually decline thereafter, reflecting a slowdown in labor force growth.
Emerging markets will continue to converge with industrialized nations as China, the U.S., India, Indonesia, and Germany lead the way for the largest economies in dollar terms. Nigeria, Pakistan, and Egypt may also be among the largest.
The U.S. is unlikely to repeat its relatively strong performance of the last decade, and the exceptional strength of the dollar will also weaken over the next 10 years.
While income inequality between countries has narrowed, within countries it will continue to grow.
Slower population growth is a good problem, they said, because it means less pressure on the environment. Nevertheless, it will cause a number of economic problems, such as how countries will pay for rising health care costs for their aging populations.