Emerging 7 to overtake G7 in economic dominance by 2020

The "E7" group of emerging countries - China, India, Brazil, Russia, Indonesia, Mexico and Turkey - is likely to overtake the current G7 by 2020 in terms of economic dominance.

According to professional services firm PriceWaterhouseCoopers (PwC), the impact of the recession and the financial crisis around the world is expected to further accelerate the shift in global economic power to the emerging economies.

The UK is likely to lag behind Asia and Latin America in growth, the report adds.

According to PWC's projections, the UK's share of world GDP would decline over the next 40 years from over 3 per cent to under 2 per cent. Currently the UK's share of exports to the  emerging markets is small as compared to its trade with the US and EU.

''If increased trade and investment between the UK and the E7 economies can be achieved, the UK economy and consumers can benefit from the high growth of the emerging economies and might do somewhat better than our projections suggest, although the UK will still not be able to grow as quickly as the emerging economies themselves,'' PwC chief economist John Hawksworth said.

The UK currently is at the seventh rank in terms of GDP at PPP (purchasing power parity)'s ranking and is expected to slip to the 10th position by 2020. The UK will be overtaken by Brazil as early as 2013.