ArrowArtboardCreated with Sketch.Title ChevronTitle ChevronEye IconIcon FacebookIcon LinkedinIcon Mail ContactPath LayerIcon MailMenu BurgerPositive ArrowIcon PrintIcon SearchSite TitleTitle ChevronIcon Twitter
Economy

Indonesia set to become fourth-largest economy

 (placeholder image)
Chinese president Xi Jinping walks alongside Indonesia President Joko Widodo. Their countries will be the first and fourth largest economies in 2050.   © Kyodo

TOKYO -- If you are a business owner trying to decide which Asian country to invest in, it might help to know that Indonesia is on track to become the world's fourth-largest economy in 2050.

     According to a forecast released this week by the Economist Intelligence Unit, Asian economies are leading the way with Indonesia, China, India and Japan expected to be in the world's top five economies in terms of nominal gross domestic product.

     The projection is intended to help companies make strategic business decisions over the long term, taking into account factors such as the availability of an educated workforce, the openness of the economy, the legal framework and quality of bureaucracy.

     Indonesia's and Mexico's economies, which were ranked 16th and 15th respectively in 2014, will move up to fourth and eighth, knocking Italy and Russia out of the top ten.

     At the top, China is expected to overtake the U.S. in 2026 to be the world's largest economy. By 2050, the Chinese economy will grow to $105 trillion, almost 1.5 times that of America's at $71 trillion. India is predicted to be close behind on $64 trillion.

     By 2050, Asia will account for 53% of global GDP, up from 26% in 2000 and 32% in 2014. However, as its economies expand, East Asian countries will see a dramatic decline in labor, said the EIU. "Japan will see the greatest decline of over one-quarter, from 66 million to 47 million," said the report. China and South Korea are also expected to see a 17-18% contraction in their workforce. 

     "Immigration policies will move up high on government agendas as economies will be required to compete to attract a limited global pool of labor," said the EIU. 

Sponsored Content

About Sponsored Content This content was commissioned by Nikkei's Global Business Bureau.

You have {{numberArticlesLeft}} free article{{numberArticlesLeft-plural}} left this monthThis is your last free article this month

Stay ahead with our exclusives on Asia;
the most dynamic market in the world.

Stay ahead with our exclusives on Asia

Get trusted insights from experts within Asia itself.

Get trusted insights from experts
within Asia itself.

Get Unlimited access

You have {{numberArticlesLeft}} free article{{numberArticlesLeft-plural}} left this month

This is your last free article this month

Stay ahead with our exclusives on Asia; the most
dynamic market in the world
.

Get trusted insights from experts
within Asia itself.

Try 3 months for $9

Offer ends October 31st

Your trial period has expired

You need a subscription to...

  • Read all stories with unlimited access
  • Use our mobile and tablet apps
See all offers and subscribe

Your full access to the Nikkei Asian Review has expired

You need a subscription to:

  • Read all stories with unlimited access
  • Use our mobile and tablet apps
See all offers
NAR on print phone, device, and tablet media