India overtakes United Kingdom to become fifth largest economy in the world: Bloomberg

Tags: Economy/Finance

According to a news report published by Bloomberg, India has overtaken the United Kingdom to become the 5th largest economy in the world.

India is now ranked behind the United States, China, Japan and Germany.

 Main highlights of the Bloomberg Report :

• According to Bloomberg, the Indian economy overtook the United Kingdom economy at the end of December 2021.
• According to Bloomberg at the end of March 2022, the Indian Gross Domestic Product (GDP) was $854.7 billion while the United Kingdom GDP was $$816 billion.

Gap between Indian and United Kingdom economy to grow :

Bloomberg expects the gap between the Indian and United Kingdom economy to grow in future.

The United Kingdom is facing the fastest inflation in four decades and rising risks of a recession that the Bank of England (Central Bank of the United Kingdom) says may last well into 2024. 

The United Kingdom economy has contracted by 0.1% in the second quarter (April-June) of 2022.

On the contrary, India's economy is likely to grow by over 7% this year and it is expected to be one of the fastest growing economies in the world. 

The International Monetary Fund (IMF)  own forecast show India overtaking the UK in dollar terms on an annual basis this year.  

A decade ago, India ranked 11th among the largest economies, while the United Kingdom was 5th.

Basis of Bloomberg calculation :

Bloomberg has used the GDP figures of both the countries from the International Monetary Fund database and converted them into US dollars using the latest exchange rate.

What is recession ?

When there is a negative growth in the economy for the two consecutive quarters then the economy is in recession. 

Recession leads to large scale closure of factories, loss of employment, and increase in unemployment, poverty and spread in social and political unrest in the country. 

Bloomberg :

Bloomberg is an American based global media and financial data and Analytics Company. It provides data service and news to financial companies and organizations.

Its Headquarters is in New York, United States of America. 

What is the Difference between United Kingdom and Great Britain 

United Kingdom 

It is an empire consisting of England, Wales, Scotland, and Northern Ireland

 Great Britain :

It includes England, Wales and Scotland.

The Queen of England is the Head of both United Kingdom / Britain

The capital of the United Kingdom/Great Britain is London.