On Tuesday, a report revealed by the Centre for Economics and Business Research (CEBR) that India is geared up to outdo Britain and France next year and is set to become the world’s fifth-largest economy in terms of dollars. The CEBR consultancy’s 2018 World Economic League Table portrayed a buoyant picture of the global economy, enhanced by economical prices for energy and technology.
The Indian accession is reflective of a trend that will witness rising Asian economic dominance amongst the top 10 economies over the upcoming 15 years.
According to Douglas McWilliams, Deputy Chairman CEBR, “Despite temporary setbacks … India’s economy has still caught up with that of France and the UK and in 2018 will have overtaken them both to become the world’s fifth largest economy in dollar terms.” He added that India’s growth had been hampered by restrictions on high-value banknotes along with a new sales tax, a common view shared by economists polled by Reuters.
The report also brought to prominence the possibility of China overtaking the United States as the world’s No.1 economy by 2032. It further validated its claim basis the impact of President Trump’s policies on trade being less severe than expected. In addition to that, the report stated that USA would retain its global crown a year longer than that anticipated in the previous report. Although it seems that Britain would lag behind France over the next couple of years, CEBR predicted that Brexit’s impacts on Britain’s economic performance will be less than feared, directing it to surpass the French economy again in 2020.
Low oil prices and heavy reliance on the energy sector makes Russia vulnerable- the country is likely to fall to 17th place among the world’s largest economies by 2032, from the current position of 11. In late October, a Reuters poll of economists was suggestive of global economic growth in 2018 probable of a swift increase to 3.6 per cent from 3.5 per cent this year- accompanied by risks to that forecast lying on the benefits.