India is expected to become the world's largest economy by 2050, boasting GDP of a whopping $85 trillion, according to a report by Knight Frank & Citi Private Bank.
The Wealth Report 2012 forecasts that Asia - and other emerging economies around the world - will dominate real global GDP by 2050. The share of North America and Western Europe in global output will fall from 41 percent in 2010 to just 18 percent in 2050, it says. "Developing Asia's share is expected to rise from 27 percent to 49 percent in 2050. China will overtake the US to become the world's largest economy by 2020, which in turn will be overtaken by India in 2050."
Citing calculations by London School of Economics professor Danny Quah, the report predicts that world's economic centre of gravity, a theoretical measure of the focal point of global economic activity based on GDP, will shift eastwards to lie somewhere between China and India. Professor Quah calculated that in 1980, it was in the middle of the Atlantic.
The growing importance of Asia is also reflected in the rise of the super-wealthy population in the region. For the first time, the number of Asians with at least $100 million in disposable assets has overtaken those in North America. "There are now 18,000 centa-millionaires in the region covering South-East Asia, China and Japan. This is more than North America, which has 17,000, and Western Europe with 14,000," the report says.
South-East Asian deca-millionaires (those with $10 million or more in assets) already outnumber those in Europe, and and are also expected to overtake those in the US in the coming decade.