The IMF predicts that in 5 years, Chinese income will surpass that of 56 countries, and developing countries in Asia will see per capita income increase sixfold by 2025, in contrast to Latin America, the Caribbean, the Middle East, and Central Asia.

The International Monetary Fund (IMF) has released its latest forecast report indicating that in the next five years, China's continuously expanding economy will significantly boost per capita income, surpassing that of 56 other countries. According to the IMF's World Economic Outlook report analyzed by Bloomberg last month, by 2025, Chinese income will rank 70th globally, nearly placing it among the wealthiest nations, which account for one-third of the world's wealth.

The IMF predicts that this Asian economic powerhouse will have a GDP per capita adjusted for purchasing power parity of $25,307 by 2025, a figure higher than Argentina, which was once among the wealthiest countries a century ago but is now burdened with debt and facing a currency crisis.

Jim O'Neill, former head of global economic research at Goldman Sachs, who famously coined the acronym "BRIC" for Brazil, Russia, India, and China in 2001, stated that the BRIC group would surpass the G7 nations in size due to the inclusion of China and India.

The IMF report, as analyzed by Bloomberg, reveals interesting data reflecting the rapid growth of per capita income in Eastern Europe and certain Asian countries. For instance, Turkmenistan is expected to be the only country to rank higher than China, while Armenia, Georgia, Vietnam, and Bangladesh are also projected to improve their standings.

Overall, developing countries in Asia are expected to see per capita income increase sixfold during this period, in stark contrast to Latin America and the Caribbean, the Middle East, and Central Asia, where per capita income is not even expected to double.

Among the seven wealthiest nations, the average GDP per capita will range from $31,471 to $64,582 by 2025, with Italy being the only country to drop in rank from 21st to 35th.

The United States is expected to improve its ranking, moving from 11th place in 2000 with a GDP per capita of $36,318 to 9th place this year, while neighboring Canada is projected to fall six spots to 24th, and Mexico is expected to drop 26 places to 77th among countries with the lowest GDP per capita.

Meanwhile, the economies of Latin America and the Caribbean are growing at the slowest rate compared to other regions, heavily impacted by the COVID-19 pandemic, particularly Venezuela, where the IMF predicts a staggering 36% decline in GDP per capita this year compared to 2000.

Haiti's economy has yet to recover from the damage caused by the earthquake ten years ago, despite receiving billions in aid. The IMF predicts Haiti will rank 183rd out of 191 countries in this assessment, down from 159th in 2000, making it the lowest-ranked country in the Western Hemisphere.

In the Gulf countries, which were among the wealthiest at the turn of the century, rankings have dropped across the board due to declining oil prices, with Bahrain, Kuwait, Oman, and Saudi Arabia falling out of the top 20, while living standards have stagnated or significantly decreased.

Other countries in the region have been severely affected by war and political turmoil, leading to significant drops in rankings for Libya, Syria, and Yemen. In Lebanon, the situation is so dire that the IMF predicts a 25% contraction in GDP for this year alone. Unsurprisingly, the IMF will likely revise down its per capita income forecasts for Middle Eastern countries by 2025.

Sub-Saharan Africa continues to experience very slow economic growth, although some countries are beginning to see light at the end of the tunnel. In 2000, GDP per capita in Seychelles and Gabon was around $10,000, but by 2025, over six countries are expected to have GDP per capita at or above $10,000.

In Asia, living standards have significantly improved, starting with China, where GDP per capita doubled from 2000 to 2006, and the IMF predicts it will double again by 2024, resulting in an average growth rate of 9.1% over 25 years.

Macau and Singapore are expected to rise into the top three wealthiest countries, alongside Luxembourg. In 2006, Singapore's GDP per capita surpassed that of the United States, and the IMF forecasts that only four countries among the 50 largest economies will see increases in GDP per capita: Vietnam, Taiwan, Egypt, and China, with Vietnam and Taiwan benefiting from being global manufacturing hubs for electronic components.

SOURCE: www.bangkokbiznews.com