European economies will fare worse than those in Asia in the coming years as green policies hit growth, according to a report.
The Centre for Economics and Business Research (CEBR) expects global output to jump from £82trillion this year to £173trillion in 2038.
The bulk of the growth will reflect catch-up between previously less developed economies and more mature economies, the report said.
Douglas McWilliams, the CEBR deputy chairman, said: ‘One driving factor is likely to be the differential pace of implementing net zero.’
He added: ‘The EU is in the lead on this. Asian economies are likely to move less rapidly, at a pace where the economic costs are smaller. India, Korea, Indonesia, Bangladesh, Vietnam and the Philippines [will] move sharply up.’
The US remains the world’s biggest economy followed by China. The UK is sixth.
However, by 2038, the CEBR said China would be the largest, with the UK still sixth.
The biggest risers will be Vietnam (37th to 21st), Bangladesh (35th to 20th) and the Philippines (39th to 23rd).
The CEBR said the US should overtake China again in the 2050s before India takes top spot in the 2080s.
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