GG News Bureau
New Delhi, 3rd September. Regardless of the fact that there are numerous indices available, the GDP growth rate remains the best predictor of a country’s economic health. This is precisely where India has struck the world at breakneck speed. Data-driven analysis clearly shows that no country performs or will perform better than India.
India’s phenomenal GDP growth rate
GDP figures for the April-June quarter are now available. According to the most recent estimates, India’s GDP increased by a whopping 13.5% year on year in the preceding quarter. This appears to be the second highest annualised growth rate, following 20.1% during the same period last year.
However, there is a loophole to last year’s growth. It did not provide a complete picture of the story.
The base effect caused by a GDP contraction in the same time period in 2020 is primarily responsible for last year’s high growth. It had a shaky foundation. However, because of higher productivity, the growth rate this time deserves more praise.
The American continent is not even close
When we compare India’s GDP growth rate to other economies around the world, the applause grows much louder. No country, whether developed like the United States or rapidly developing like China or Brazil, could beat India. The official figures are as follows.
First, consider the rate of growth of “The Great Experiment.” America, or the United States, has entered a technical recession. The Biden administration oversaw a 0.6% decrease in GDP growth rate year on year. However, this is good news for Americans because the previous quarter’s growth rate was -1.6 %.
Its neighbor Canada outperformed the United States. Despite trucker protests and other internal issues that have slowed the Canadian economy, official statistics show that the Canadian economy is expanding at a rate of 3.30%. Europe’s top two economies are collapsing.
When it comes to the Eurozone, simply stating that the continent is in shambles will not suffice. They are on the verge of annihilation. Germany, Europe’s largest economy, grew by only 1.7% year on year. The situation in Germany is so bad that residents of the country, which has historically been Europe’s most industrialized economy, are cutting down trees for firewood.
The United Kingdom, its toughest competitor on the continent, is also struggling. Despite having nearly 30% less GDP than Germany, it could only grow by 2.9%. However, not every country in Europe is doomed.
Europe’s top two economies are collapsing
When it comes to the Eurozone, simply stating that the continent is in shambles will not suffice. They are on the verge of annihilation. Germany, Europe’s largest economy, grew by only 1.7% year on year. The situation in Germany is so bad that residents of the country, which has historically been Europe’s most industrialized economy, are cutting down trees for firewood.
The United Kingdom, its toughest competitor on the continent, is also struggling. Despite having nearly 30% less GDP than Germany, it could only grow by 2.9%. However, not every country in Europe is doomed. Japan, the shining light on the Asian continent, could only grow at a 2.2% annual rate.
Even the developing region of Asia does not appear to be gaining traction. Countries such as Sri Lanka, Bangladesh, Pakistan, Afghanistan, and Nepal are facing civil war as a result of their economies collapsing.
China has deposed its various BRICS partners
China, the country that has brought these nations to this point, is also staring into the abyss. Even with his full authoritarian response to the impending crisis, Xi Jinping was unable to increase his workforce. It appears that Chinese workers are simply refusing to participate in the economy, and the GDP growth rate of 0.4% is a prime example of discontent among Chinese economic agents.
The impact of China’s slowdown was also visible in its trading partner Brazil. While the Jair Bolsonaro administration has yet to release growth figures, the IBC-Br economic activity index predicts a 0.69% increase in GDP. South Africa, a BRICS member and a developing country like Brazil and China, is just getting back on its feet. The country of AB Devillers grew at a 1.9% annual rate in the first quarter of this year.
All of these countries that are responsible for carrying forward the global growth rate could avoid responsibility by blaming it on Covid. However, Covid is now two and a half years old, and its effects have faded. One example is India’s GDP growth rate exceeding pre-pandemic levels.
The future looks bleak
On the other hand, these countries’ prospects for the future are bleak. Poor policies are now reflected in future projections. The International Monetary Fund predicted a bleak future for the global economy in its July 2022 World Economic Outlook report, with the exception of India. According to the IMF’s report, India will be the fastest growing major economy.
According to the IMF, India will grow at a 7.4% annual rate in FY22, while China will grow at less than half that rate. Its economy will grow by only 3.3%. The Eurozone will grow by 2.6%., with Spain leading the way with 3.0%. Their friend, the United States, will outperform them with a 2.3% increase in GDP.
India is a clear outlier among the world’s economic powerhouses. It is only possible because of the Modi government’s redistribution policy, combined with a push for long-term infrastructure development. A large portion of the credit also goes to our young population, particularly for maintaining economic demand.
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