India beats United Kingdom to become the World’s Fifth Largest economy. “This news comes as a further blow to the government in London as it grapples with a brutal cost-of-living shock”, as per a Bloomberg report.
The figures were in US Dollars. India shooked the UK from its position in the last three quarters of 2021 and now has further maintained a lead in the first quarter, as stated by the GDP figures from International Monetary Fund.
India Steals Fifth Position From UK As World’s Largest Economy
“India leaped past the UK in the final three months of 2021 to become the fifth-biggest economy. The calculation is based on US dollars, and India extended its lead in the first quarter, according to GDP figures from the International Monetary Fund,” mentioned by NDTV.
IMFs data forecast shows India, overtaking the UK on the annual basis in terms of the calculations based on the dollar, is just behind the four economic powerhouses “US, China, Japan, and Germany”. In the past, nearly a decade ago, India was ranked 11th on the list of the world’s largest economies, whereas the UK was 5th.
The UK’s position slip in International economic ranking is an unwelcoming setback for the new Prime Minister. As Foreign Secretary Liz Truss is all set to defeat the “Former Chancellor of the Exchequer” Rishi Sunak, and Conservative Party members are expected to choose Boris Johnson‘s successor, as Monday comes.
Whoever the winner will be, is expected to face the challenge to tame the fastest advancing inflation recorded in four decades, along with the “rising risks of a recession that the Bank of England says may last well into 2024”.
“By contrast, the Indian economy is forecast to grow more than 7% this year. A world-beating rebound in Indian stocks this quarter has just seen their weighting rise to the second spot in the MSCI Emerging Markets Index, trailing only China’s,” mentioned by NDTV.
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“The UK is likely to have fallen further since. UK GDP grew just one percent in cash terms in the second quarter and, after adjusting for inflation, shrank 0.1 percent. Sterling has also underperformed the dollar relative to the rupee, with the pound falling eight percent against the Indian currency this year.”
