Lagatar24 Desk
New Delhi, Sept 3: India leaped Britain on Saturday to take over as the fifth-largest economy in the world. International Monetary Fund (IMF) GDP data show that the UK economy lagged behind India in the first quarter. India was the eleventh-largest economy ten years ago, while the UK was the fifth-largest.
The standings have changed just before the UK is about to elect a new Prime Minister. According to reports, the UK’s ranking decline is the result of the nation’s skyrocketing cost of living.
For the first time since 1982, the nation saw double-digit consumer price inflation last month (10.1%). The decrease in rank causes the issues facing Boris Johnson’s replacement to become even more difficult.
According to reports, former Chancellor of the Exchequer Rishi Sunak would likely lose the prime ministerial election to Foreign Secretary Liz Truss.
The UK faces increasing threats of a recession, making this the most critical issue for the future prime leader to solve. The Bank of England predicts that there may be recession risks through 2024.
The Indian economy, on the other hand, is anticipated to expand by more than 7% this year. Indian stocks had a dramatic resurgence and now rank second only to Chinese stocks in the MSCI emerging markets index.
According to the IMF’s own projections, India may conceivably outperform the UK in dollar terms on an annual basis in 2022. India would fall behind only the US, China, Japan, and Germany in this ranking.
The size of the Indian economy, on an adjusted basis and using the dollar exchange rate on the last day of the relevant quarter, was $854.7 billion from January through March. According to Bloomberg, the UK was worth $816 billion on the same basis.
According to reports, the UK’s second-quarter GDP increased by 1% in cash terms but only by 0.1% after accounting for inflation. In 2022, the British pound tanked as compared to the Indian rupee, losing 8% of its value.
