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World's Third Largest Economy: India to Beat Japan
By siliconindia
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Wednesday, 21 September 2011, 01:03 IST |
19 Comments
The purchasing power parity (PPP) method measures the size of an economy by leveling price differences between countries that occur in the process of conversion to a single currency.
Numbers from 2010 show that the Japanese economy was worth $4.31 trillion, with India snapping at its heels at $4.06 trillion. But after March's devastating tsunami and earthquakes, Japan's economy is widely expected to contract. The massive earthquake in northeast Japan earlier this year has led to additional government spending which is pushing the country's public debt to higher levels reports International Monetary Fund (IMF). Japan's public debt is over 220 percent of the country's GDP in gross terms, the highest level among advanced economies.
Reconstruction spending is likely to further increase Japan's sizable public debt, and the report predicts GDP growth is likely to slow to -0.7 percent this year before rising to 2.9 percent in 2012. India is expected to grow anywhere between 7 to 8 percent.
