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Asia Minute: India moves up the IMF rankings of economic size

India Economy
Mahesh Kumar A/AP
FILE - Laborers work on the construction of a residential apartment in Hyderabad, India, Friday, Aug. 5, 2022. (AP Photo/Mahesh Kumar A.)

When it comes to the largest economies in the world, several countries in Asia have been moving up the global ranks.

Despite the challenges of more than two years of pandemic slowdowns and restrictions, one of the largest economies in the region is marking another change.

India is now the fifth largest economy in the world, according to the International Monetary Fund, which tracks the relative size of economies the way some people follow baseball standings.

The rankings are based on figures that go through the first quarter of this year.

India took the place of the United Kingdom — which has now slipped to sixth.

Ten years ago, India's economy was the 11th largest in the world, according to the IMF’s running scorecard of gross domestic product.

Of course, that’s only one measure of economic reality — when it comes to figures like per capita GDP — the size of an economy divided by the number of its residents, India ranks much lower.

The IMF drops it down to number 142 in its latest rankings of per capita GDP.

And one of the figures that markets — and central banks — pay more attention to concerns not the overall size of an economy, but its rate of growth.

The IMF forecasts India’s economic growth to top 7% this year — faster than China.

In fact, the website Focus Economics projects that over the next three years, India’s growth will continue to average more than 7% — fastest among the world’s major economies.

Bill Dorman has been the news director at Hawaiʻi Public Radio since 2011.
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