China 'to dwarf G7 states by 2050'

The Asian giant's economy is set to double in size between 2005 and 2050, according to the report.

As with other developing countries, a key driver for China's rapid growth is its younger, cheaper workforce, it argues.

India, meanwhile, is expected to be the world's fastest-growing economy.

China's boom

PwC is basing its analysis on forecasts for economic growth on the basis of purchasing power parity (PPP).

Winners and Losers

• India to be the world's fastest growing economy
• Japan to be overtaken by China's and India's economies
• German, UK and French economies to be oustripped by Mexico

This figure defines the size of an economy by adjusting for local costs.

While China's economy is currently 18% the size of the US's in dollar terms, it is 76% as big on a PPP basis.

By 2050, PwC believes, it could be 43% bigger than the US by PPP - although it would still lag when measured in terms of dollar size.

Also on a PPP basis, PwC says the German, UK and French economies could end up smaller than Mexico's economy and similar in size to that of Russia.

Both Japan and Germany whose economies stand in second and third place after the US, are expected to be surpassed by developing countries India and Brazil by 2050.