AUSTRALIA will have to stop having a mining-focused economy if it is to remain part of the top 20 world economies, a report has warned.
The World in 2050 report shows Australia risks falling out of the G20 and slip from being the 19th largest world economy in 2014 to 29th in 2050.
The report shows countries including Bangladesh, Egypt, Iran, Pakistan, Philippines and Thailand are projected to surpass Australia by 2050.
"Australia has punched above its weight historically, however our fall from the G20 to the G30 will challenge our relevance within the world," global accounting body PwC Australia economics partner Jeremy Thorpe said.
The World in 2050 report explores economic growth projections for 32 of the largest economies in the world.
The report says the world economy will grow at an average of about 3% a year between now and 2050, doubling in size by 2037 and nearly tripling by 2050.
Mr Thorpe said the report showed developing countries with rapidly growing populations, increasing urbanisation and education improvements were trumping Australia.
"Business, government and community leaders must move their focus away from the next results announcement or election and turn towards planning for the long term to prevent us slipping down the ranks," Mr Thorpe said.
He suggested investing away from mining and into education, particularly in science technology, engineering and mathematics.
- APN NEWSDESK
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