According to The Economic Times, Peru will be among the emerging economies that will become much more prominent in the next few decades, helped by demographics and rising education standards.
HSBC bank expects China to overtake the United States as the world’s biggest economy by 2050, and says strong growth rates in other developing countries will help drive the global economy.
“Plenty of places in the world look set to deliver very strong rates of growth. But they are not in the developed world, which faces both structural and cyclical headwinds. They are in the emerging world,” the bank said in its report ‘The World in 2050’.
It based its forecasts on fundamentals such as current income per capita, rule of law, democracy, education levels and demographic change.
HSBC said lower scores for rule of law in Latin America constrained its per-capita inccome projections for the region though it noted that Brazil was making headway in this aspect.
The bank projects that Peru should average annual growth of 5.5 percent over the next 40 years.