The World in 2050 report projects that the UK will fall from 9th to 10th place in the global economy rankings in terms of purchasing power parity (PPP) by midway of this century, and from 5th to 9th at market exchange rates.
However, despite some medium-term drag as a result of Brexit, The UK will grow faster than other large European countries in the long-term due to its relatively high projected working-age share of the population.
PwC chief economist, John Hawksworth, said: “After a year of major political shocks with the Brexit vote and the election of President Trump, it might seem brave to opine on economic prospects for 2017, let alone 2050.
“But by looking beyond unpredictable short-term economic and political cycles and focusing on fundamentals, long-term growth projections can actually be more reliable than short-term forecasts.
“Our relatively positive long-term growth projection for the UK is due to favourable demographic factors and a relatively flexible economy by European standards.
“However, developing successful trade and investment links with faster-growing emerging economies will be critical to achieving this, offsetting probable weaker trade links with the EU after Brexit.”
The world economy is expected to double in size by 2042, growing at an average annual rate of 2.5% up to 2050, with six out of the seven largest economies projected to be emerging markets.
The top 10 forecast global GDP rankings in PPP terms (US $bn at constant 2016 values) are shown below: