My E7 is Bigger than Your G7

The Group of Seven economies will be eclipsed in size by the world’s biggest emerging markets within two decades, led by China, according to calculations by PricewaterhouseCoopers LLP.
Mavi Boncuk

After matching the G-7 in around 2019, the combined gross domestic product of China, India, Brazil, Russia, Mexico, Indonesia and Turkey [1] will be around 30 percent higher by 2030 than that of the U.S., Japan, Germany, France, U.K., Italy and Canada, John Hawksworth, PwC’s London-based head of macroeconomics, said in a report today.

In a combined G7 E7 ranking Turkey will place 12th. behind Germany: - 5,024,000,000,000 and France: - 4,592,000,000,000 with 3,943,000,000,000 ahead of Canada: - 3,149,000,000,000 and Italy: - 2,950,000,000,000 in US$ as predicted by Goldman Sachs.

The new report by PricewaterhouseCoopers, ‘Banking in 2050: How big will the emerging markets get?’, examines the possible changes in the scale of the banking sector between now and 2050 and highlights the pace of change, while providing some measure of the size of the opportunity and challenge for banks. The projections are based on an analysis of developments in G7 and E7 [2] banking markets since the 1950s, which highlights the tendency of the banking sector to grow faster than GDP as economies develop.

[1] Recent trends and key market drivers for Turkey
· Macroeconomic environment much improved since late 1990s (lower inflation)
· European banks increasing active in Turkey
· New Banking Law strengthened banking supervision/regulation
· Strong consumer lending growth potential
PwC Offices in Turkey

[2]The term was coined by the PricewaterhouseCoopers in the Stern Review report, which was published on October 30, 2006. The E7 represents the seven major emerging economies.