Service firm sees PHL as among world's top 20 economies by 2050

The Philippines is likely to be ranked among the top 20 economies of the world by 2050 in terms of purchasing power parity (PPP), according to professional services firm PricewaterhouseCoopers (PwC).

In its report titled "The Long View" published and posted on the World Economic Forum website, PwC said the Philippines is expected to be ranked 24th globally in 2030 and 19th in 2050, in terms of PPP.

PwC is a service firm that counts as clients some 422 companies in the Fortune Global 500. It caters to assurance, tax, and advisory services to its clients.

The PPP is the country's gross domestic product (GDP) adjusted for price level differences across countries to provide a better measure of the volume of goods and services produced in an economy.

The Philippines was ranked 28th in 2016 in terms of PPP, after ending the year with an upwardly adjusted 6.9-percent economic growth driven by the construction, mining, and quarrying sectors.

PwC also ranked the Philippines among the "strong emerging market performers" or countries seen to benefit from their demographics.

"All of these emerging countries tend to benefit from strong population growth; however, their progress will depend on being able to generate enough jobs for the young people in their countries," it said.

Last year, the United Nations Population Fund (UNFPA) said the Philippines will ideally achieve the demographic dividend — the demographic sweet spot when the country will benefit from the earning capacity of a relatively young population — in 2050.

"If they cannot do this, it could be a cause of political instability. For all these countries, therefore, our projections should be seen as indicating the potential for growth, rather than a guarantee that this potential will be realised," PwC said.

For its part, the Duterte administration has set a 6.5- percent to 7.5-percent economic growth target this year. It also targets a 7- to 8-percent growth from 2018 to 2022. —Jon Viktor Cabuenas/KBK, GMA News