Britain lost its fifth-place ranking to India, moving up to the sixth-largest economy in the world.
Bloomberg reports that India surged, passing the United Kingdom to become the world’s fifth-largest economy in the final three months of 2021. The International Monetary Fund reports that India continued to grow in the first quarter.
The Bank of England predicts that a recession might last until 2024 as Britain experiences its worst inflation rate in four decades and growing recessionary risks.
The Indian economy, on the other hand, is anticipated to expand by more than 7% this year, particularly in light of the large increase in Indian stock prices that occurred this quarter, which propelled them to second position in the MSCI Emerging Markets Index, behind China.
The Indian economy had a nominal GDP of $854 for the three months ending in March.
7 billion, and the UK had a $816 billion economy.
Britain’s current condition
The difficulty for the new British prime minister, who will take office on Monday following the run-off between Foreign Secretary Liz Truss and former Chancellor of the Exchequer Rishi Sunak, has increased as a result of Britain’s retreat.
The economy of Britain will be handed over to its next prime minister with severe inflation, almost daily strikes, and energy prices that will increase by 80% in October.
The British leaving their economic agreement would be another setback for the new government, which is already dealing with a significant cost shock.
The decline of the British economy is even more severe because the UK GDP increased by just 1% in real terms during the second quarter and shrank by 0. 1% after accounting for inflation.
With the pound losing 8% of its value versus the rupee this year, the pound has underperformed the dollar relative to the Indian currency.
India is expected to surpass the UK in dollar terms on an annual basis this year, according to the IMF’s own projections, moving the Asian giant behind only the US, China, Japan, and Germany.
India was the fifth-largest economy ten years ago, while the United Kingdom was in fifth place.
India does better economically than Britain. How was London forced to recede due to inflation?
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