Goldman Sachs tips Nigeria to become 5th world’s largest economy with $13.1tr GDP by 2075

The global investment bank, Goldman Sachs has projected that Nigeria’s Gross Domestic Product (GDP) will reach $13.1 trillion by 2075.

Nigeria’s GDP currently stands at $472.62 billion.

The development, according to the. company, will make the country become the world’s fifth largest economy by 2075.

The firm made the. projection in it’s Global Investment Research (2022) report it identified the 25 largest economies.

The report also projected the country to rank as the world’s 15th-largest economy by 2050.

Nigeria’s growth is expected to be driven by its large and young population, potential in agriculture and energy sectors, and emerging technology sector.

The report put Nigeria ahead of Pakistan in 6th position, Egypt (7th), Brazil (8th), Germany (9th), UK (10th) Mexico (11th), Japan (12th), Russia (13th), Philippines (14th), and France (15th).

Other countries trailing Nigeria are Bangladesh (16), Saudi Arabia (18th), Canada (19th), Turkey (20th), Australia (21st), Italy (22nd), Malaysia (23rd), South Korea (24th), and South Africa ( 25th).

China is projected to overtake the United States as the world’s largest economy by 2050 up till 2075, while India is expected to emerge as the world’s second-largest economy by 2075.

The third and fourth positions, according to the report, will go to the US and Indonesia, respectively.

The report, however, pointed out that political instability, infrastructure deficits, and diversifying the economy beyond crude oil could pose constraints to the growth projections.

The report stated that the weight of global GDP will shift substantially towards Asia over the next several decades.

READ ALSO:World bank projects Nigerian economy to grow at 3.3 per cent in 2024, up from 2.9%

Goldman Sachs further explained that the assessment was based on extensive data analysis and economic modeling, which offered a fascinating glimpse into the future, highlighting shifts in economic power and the emergence of new players on the global stage.

The projection further painted a picture of a world where Asia’s economic clout is markedly pronounced, with China and India leading the charge.

The list also reflected the significant growth of economies in Africa, the Middle East, and Latin America, indicating a more diversified global economic landscape.

Essentially, the report incorporates factors, including GDP growth rates, population dynamics, productivity improvements, and technological innovation in its assessment, noting however, that such long-term forecasts are inherently speculative and subject to change based on unforeseen global events and trends.

The report said Indonesia, which has the world’s fourth largest population at 277 million could grow its GDP from $1.3 trillion in 2022 to nearly $14 trillion by 2075, while Japan’s GDP is expected to grow by less than one per cent annually for the next several decades, pushing it out of the top 10 by 2075.

Although China’s population is beginning to shrink, its GDP could climb to $57 trillion by 2075, keeping ahead of India at $52.5 trillion and the United States at $51.5 trillion.

Also, Egypt is tipped to become the world’s seventh largest economy by 2075 with an estimated GDP of $10.4 trillion, driven largely by the country’s strategic location, growing service sector, and government reforms in infrastructure and energy.

Nigeria’s economic rival, South Africa with a projected GDP of $3.3 trillion is expected to emerge as the world’s 25th economy by 2075, banking on its rich natural resources, developed financial and legal systems, and regional influence.

Reacting to the report, Founding Chief Executive, of Praefinium Partners, Alpesh Patel, said the projection for 2075 highlighted a world where economic power is more evenly distributed globally, with emerging economies playing increasingly prominent roles.

He said: “This shift underscores the importance of economic reforms, technological advancement, and demographic factors in shaping the future global economic landscape.

“The rise of countries like India, Indonesia, and Nigeria, alongside the sustained economic influence of nations like the US, China, and Germany, paints a diverse and dynamic picture of the world economy in the latter half of the 21st century.”

By: Babajide Okeowo

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