America will fall to number three on the list of the world's largest economies behind China and India, a British financial services firm is predicting.
China will overtake the United States as the world's largest economy in a decade's time while India will assume second place, according to Standard Chartered, which unveils its annual rankings of the world's ten largest economies.
It predicts that America will fall to third on the list behind the two Asian giants by 2030, according to Fox Business.
The firm predicts that the new global order will see current emerging markets occupy seven of the top 10 spots.
China will overtake the United States as the world's largest economy in a decade's time while India will assume second place, according to a British financial services firm. The above image is a stock photo of Hong Kong
While America is expected to trail behind China and India, Indonesia will vault into the fourth slot.
‘Our long-term growth forecasts are underpinned by one key principle: countries' share of world GDP should eventually converge with their share of the world's population, driven by the convergence of per-capita GDP between advanced and emerging economies,' Standard Chartered economists write in their study.
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The size of a country's economy is determined by gross domestic product (GDP), which measures the market value of all the final goods and services produced in a period of time.
Standard Chartered predicts that Turkey will round out the top 5.India, and not the United States, is predicted to be the second largest economy in the world by 2030. The above image is a stock photo of the Indian financial hub of Mumbai
Standard Chartered predicts that America will fall to third on the list behind the two Asian giants by 2030. New York City is seen in the above file photo
Brazil is the only Latin American country in the top 10. It is predicted to be the sixth largest economy by 2030, with a GDP of $8.6trillion.
Egypt is the only Middle Eastern country on the list. It is predicted to have the seventh largest economy with a GDP of $8.2trillion.
Russia is slated to be the eighth largest economy with a GDP of $7.9trillion.Japan and Germany fall down in the rankings. The Asian giant finishes in ninth with a GDP of $7.2trillion while Germany rounds out the top 10 at $6.9trillion.
The countries that are currently in the top 10 - and which are predicted to fall out of the rankings - are the United Kingdom, Italy, France, and Canada.
India forecast its economy will grow more than 7 per cent in the current financial year ending in March, giving some relief to Prime Minister Narendra Modi who seeks a second term in national elections to be held by May.
Annual economic growth had fallen to a worse-than-expected 7.1 per cent in the July-September quarter, from 8.2 per cent in the previous quarter,
iconwin dragged down by a slower consumer spending and farm growth, posing a risk to Modi who plans a populist budget to win back voters.
While America is expected to trail behind China and India, Indonesia will vault into the fourth slot. The Indonesian capital of Jakarta is seen in the above file photo
With the fall in global crude oil prices and strengthening of the rupee in recent weeks, the Modi administration plans to prop up rural demand through higher state spending and a financial package for farmers in the annual budget to be presented on February 1.
Gross domestic product is estimated to grow 7.2 per cent in 2018/19, faster than a provisional 6.7 per cent growth in 2017/18, Ministry of Statistics said in a statement.
Manufacturing is now forecast to grow 8.3 per cent this fiscal year compared with 5.7 per cent in the previous year.
Farm output may grow 3.8 per cent, up from 3.4 per cent.