Tuesday, February 09, 2010

Fogel on world economy in 2040

Robert Fogel, winner of Nobel prize in economics in 1993, predicts China will dominate the world economy by 2040 (see the table below).

 His prediction raised some heated debate in economics profession. In a recent NBER paper, he explained why he thinks:

1. China's future growth rate will be about 8% per year between 2000 and 2040;
2. EU-15 will only grow at 1.2% per year between 2000 and 2040;
3. The U.S. GDP between the same years will grow at 3.7% per year.