According to a report released by the International Comparison Program—presented by the Development Data Group at the World Bank—in 2011, India’s economy grew to the third largest in the world from placing at the 10th largest in 2005 and is now ahead of Japan. The US is still the largest economy, succeeded by China.
China, India, and Indonesia’s rankings, in comparison to the US, doubled; Brazil, Mexico, and Russia grew by a third or more. In 2011, worldwide production of goods and services amounted to more than $90 trillion, and almost half came from low and middle-income countries. Six of the world’s 12 largest economies have been classified as middle-income countries: China, India, Russia, Brazil, Indonesia, and Mexico.
The six biggest middle-income economies contributed 32.2 percent of the world GDP, while the six biggest high-income countries—US, Japan, Germany, France, UK, and Italy—contributed 32.9 percent.
China and India are growing rapidly and, with the exclusion of Japan and South Korea, account for two-thirds of the Asia and Pacific economy. China and India also account for almost 80 percent of investment expenditure in the same Asia and Pacific region.
Rise of middle-income countries will continue to provide the largest export markets for high-income countries, benefiting the world economy and reducing global income inequality.
Developed and Written by Dr. Subodh Das and Tara Mahadevan
May 2, 2014
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