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Only 26% of World GDP to Come From Free Economies in 2050

For the last 40 years, markets were in the ascendant and the state in retreat, but with China, that trend is reversing.

Only 26% of World GDP to Come From Free Economies in 2050
An employee rides a bicycle at the Kao Ming Container Terminal Corp. in Kaohsiung, Taiwan. (Photographer: Billy H.C. Kwok/Bloomberg)
Only 26% of World GDP to Come From Free Economies in 2050

For the last 40 years, with the Reagan revolution sweeping the world -- markets were in the ascendant and the state in retreat -- but with the rise of China, that trend is swinging into reverse. Marrying Bloomberg Economics’ forecasts for long-term growth with the Heritage Foundation’s economy classifications of “free” and “unfree” we can chart the evolution: In 1990, about 66% of global GDP came from “free” and “mostly free” economies; by 2020, that share had fallen to 45%; by 2050, it will likely have declined to 26%.

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