In this article, we will be taking a look at the 25 largest economies in the world by 2040. To skip our detailed analysis, you can go directly to see the 5 Largest Economies in the World by 2040.

Global Economic Outlook

The current scenario of the global economy doesn’t give us a clear picture of the near-term economic situation with certainty. The recent major events that led to global economic uncertainty began with the emergence of the COVID-19 pandemic, which was followed by worldwide lockdowns, supply chain distributions, international trade cut-offs, downsizing, and most importantly, a crisis in the global health sector. As we mentioned earlier, the economy seems to be in the recovery stage with global growth expected to remain steady at 3.1% in 2024 and 3.2% in 2025. 

According to research by The Goldman Sachs Group, Inc. (NYSE:GS), the world’s fastest years of economic growth have likely already passed. Population growth is weakening, climate change, and increasing geopolitical risks, among other factors will impact the global economy. However, the emerging economies and major economies in Asia are directed to keep catching up to richer countries. According to the IMF's GDP forecast for 2030, 16 Asian countries will be among the leading economies. China, India, Indonesia, and Japan will be among the top six economies by 2050 along with the US and Germany. As per The Goldman Sachs Group, Inc.’s (NYSE:GS) 2075 forecast, China will be the leading economy with India in second place, the US in third place, and Indonesia in fourth. Nigeria and Pakistan will climb up the ranks to fifth and sixth place in 2075, respectively. 

The global economy is forecasted to grow at an average of 2.8% annually between 2024 and 2029 and to gradually decline thereafter, as per The Goldman Sachs Group, Inc. (NYSE:GS). This shows a slow economic growth compared to an average growth rate of 3.6% for the 10 years before the global financial crisis and 3.2% in the decade before the COVID-19 pandemic. The reason for slow economic growth is due to the ebbing population growth rate. During the past 50 years, the global population has halved. According to UN projections, the world’s population is expected to increase by almost 2 billion in the next 30 years. This would mean that in 2050 the world’s population will reach 9.7 billion from the current population of 8 billion. The global population could peak at a forecasted 10.4 billion in the mid-2080s. Apart from the population, economists expect weakening productivity to be another key reason for slow GDP growth in the future. 

Despite the slow economic growth worldwide, emerging economies will keep on growing more swiftly than developed economies. China is most likely to overtake the US by 2035, becoming the world’s largest economy. China, India, and Indonesia have outperformed Goldman Sachs economists’ forecasts from 2011, while Brazil, Russia, and Latin America have underperformed Goldman Sachs’ projections. According to The Goldman Sachs Group, Inc.’s (NYSE:GS) economists:

Corporations: A Key Driver of Economic Growth

Corporations are always a key element in driving the growth of an economy. The US is way ahead of most economies as far as the dominance of corporations is concerned around the world. Leading firms including Apple Inc. (NASDAQ:AAPL) and Microsoft Corporation (NASDAQ:MSFT) are key to the US economic progress. Apple Inc. (NASDAQ:AAPL) and Microsoft Corporation (NASDAQ:MSFT) are bigger than most economies, having a market capitalization of $2.92 trillion and $3.12 trillion, as of February 10. 

Apple Inc. (NASDAQ:AAPL) is a big player in the tech sector. On February 1, Apple Inc. (NASDAQ:AAPL) reported its earnings for the first quarter of fiscal 2024. The company posted earnings per share of $2.18, beating consensus estimates by $0.08 per share. The revenue came in at $119.58 billion, surpassing estimates by $1.31 billion. Apple Inc. (NASDAQ:AAPL) made the following comments during its Q1 2024 earnings call:

Microsoft Corporation (NASDAQ:MSFT) is another leading global tech firm. On January 30, Microsoft Corporation (NASDAQ:MSFT) announced its earnings for the second quarter of fiscal 2024. The company reported earnings per share of $2.93, surpassing estimates by $0.16. Microsoft Corporation’s (NASDAQ:MSFT) revenue was $62.02 billion for Q2 2024, ahead of market consensus by $888.19 million. The company continues to expand its cloud and AI network. Here are some of the comments from the Q2 2024 earnings call:

Now, let’s take a look at the largest economies in the world by 2040. 

25 Largest Economies in the World by 2040

Our Methodology

We have compiled the largest economies in the world by 2040 based on projections made by The Goldman Sachs Group, Inc. (NYSE:GS). To check the room for subjectivity, we also referred to forecasts made by the IMF and PwC for the biggest economies in the world in 2028 and 2050, respectively. To rank the largest economies in the world by 2040, we used the forecasted real GDP for 2040 from The Goldman Sachs Group, Inc.’s (NYSE:GS) Global Economics Paper The Path to 2075. For the countries with similar forecasted real GDP in 2040, we used Population as a tie-breaker. We collected population data from the United Nations Department of Economic and Social Affairs Population Division. 

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25 Largest Economies in the World by 2040

25. Malaysia

Real GDP Forecast (2040): $1.2 Trillion

Population Forecast (2040): 39,279,000

Malaysia is one of the fastest growing economies in the world and its population is expected to reach 39,279,000 by 2040. Malaysia’s real GDP is expected to grow to $1.2 trillion by 2040. Malaysia will be the 25th largest economy in the world by 2040.

24. Thailand

Real GDP Forecast (2040): $1.2 Trillion

Population Forecast (2040): 70,916,000

The population of Thailand is expected to reach 70,916,000 by 2040 and the real GDP is expected to grow to $1.2 trillion. Thailand ranks among the largest economies in the world by 2040.

23. Philippines

Real GDP Forecast (2040): $1.4 Trillion 

Population Forecast (2040): 145,022,000

The Philippines is expected to have a population of 145,022,000 by 2040. The Philippines is expected to have a real GDP of $1.4 trillion by 2040.

22. Poland

Real GDP Forecast (2040): $1.5 Trillion

Population Forecast (2040): 37,043,000

The population of Poland is expected to reach 37,043,000 by 2040 and the real GDP is expected to grow to $1.5 trillion. Poland ranks among the largest economies in the world by 2040.

21. Nigeria

Real GDP Forecast (2040): $1.6 Trillion

Population Forecast (2040): 320,780,000

Nigeria is one of the richest African countries. The real GDP is expected to grow to $1.6 trillion by 2040. With a projected population of 320,780,000, Nigeria will be one of the largest economies in the world by 2040.

20. Pakistan

Real GDP Forecast (2040): $1.6 Trillion

Population Forecast (2040): 322,596,000

Pakistan is expected to have a similar real GDP of $1.6 trillion as Nigeria. The population of Pakistan is expected to reach 322,596,000 by 2040.

19. Bangladesh

Real GDP Forecast (2040): $1.7 Trillion

Population Forecast (2040): 196,526,000

Bangladesh is one of the fastest growing economies in Asia and its real GDP is expected to reach $1.7 trillion by 2040. With a projected population of 196,526,000, Bangladesh will be one of the largest economies in the world by 2040.

18. Egypt

Real GDP Forecast (2040): $1.9 Trillion

Population Forecast (2040): 143,423,000

The population of Egypt is expected to reach 143,423,000 by 2040 and the real GDP is expected to grow to $1.9 trillion. Egypt ranks among the largest economies in the world by 2040.

17. Türkiye

Real GDP Forecast (2040): $2.2 Trillion

Population Forecast (2040): 93,058,000

Türkiye is one of the leading economies in the world and its real GDP is expected to reach $2.2 trillion by 2040. Türkiye’s population is expected to reach 93,058,000 by 2040.

16. Australia

Real GDP Forecast (2040): $2.3 Trillion

Population Forecast (2040): 30,356,000

Australia’s real GDP is expected to reach $2.3 trillion and the population of the country is expected to be 30,356,000 by 2040. Australia is one of the largest economies in the world. 

15. Saudi Arabia

Real GDP Forecast (2040): $2.4 Trillion

Population Forecast (2040): 44,881,000

The population of Saudi Arabia is expected to reach 44,881,000 by 2040 and the real GDP is expected to grow to $2.4 trillion. Saudi Arabia ranks 15th among the largest economies in the world by 2040.

14. South Korea

Real GDP Forecast (2040): $2.6 Trillion

Population Forecast (2040): 49,320,000 

South Korea has a population forecast of 49,320,000 for 2040. South Korea’s real GDP is expected to reach $2.6 trillion by 2040.

13. Italy

Real GDP Forecast (2040): $2.7 Trillion

Population Forecast (2040): 55,258,000

Italy is one of the richest countries in Europe and its real GDP is expected to reach $2.7 trillion by 2040. Italy’s population is expected to be 55,258,000 by 2040.

12. Canada

Real GDP Forecast (2040): $2.8 Trillion

Population Forecast (2040): 43,823,000

Canada will be the 12th largest economy by 2040 and it will have an expected real GDP of $2.8 trillion. By 2040, the population of Canada is expected to reach 43,823,000.

11. Mexico

Real GDP Forecast (2040): $3 Trillion

Population Forecast (2040): 141,055,000 

Mexico is one of the emerging economies in the world. Mexico’s expected real GDP is $3 trillion and its population is expected to be 141,055,000 by 2040.

10. Brazil

Real GDP Forecast (2040): $3.5 Trillion

Population Forecast (2040): 230,132,000

The population of Brazil is expected to reach 230,132,000 by 2040 and the real GDP is expected to grow to $3.5 trillion. Brazil ranks 10th among the largest economies in the world by 2040.

9. Russia

Real GDP Forecast (2040): $3.7 Trillion

Population Forecast (2040): 137,111,000

Russia has a population forecast of 137,111,000 for 2040. Russia’s real GDP is expected to reach $3.7 trillion by 2040.

8. France

Real GDP Forecast (2040): $3.9 Trillion

Population Forecast (2040): 66,151,000

France is one of the richest European countries. The population of France is expected to reach 66,151,000 by 2040 and the real GDP is expected to grow to $3.9 trillion. 

7. Indonesia

Real GDP Forecast (2040): $4 Trillion

Population Forecast (2040): 308,165,000

Indonesia has a population forecast of 308,165,000 for 2040. Indonesia’s real GDP is expected to reach $4 trillion by 2040.

6. United Kingdom

Real GDP Forecast (2040): $4.3 Trillion

Population Forecast (2040): 70,689,000

The United Kingdom is one of the largest economies in the world and it will be the sixth largest economy by 2040. The United Kingdom's real GDP is expected to reach $4.3 trillion and the population is expected to reach 70,689,000 by 2040. 

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Disclosure: None. 25 largest economies in the world by 2040 is originally published at Insider Monkey.