World Bank: India Overtakes Japan as Worlds Third Largest Economy In purchasing power parity (PPP) terms, India is now the world’s third largest economy — surpassing Japan. According to the World Bank’s International Comparison Program (ICP) data, India holds a 6.4 percent share of global GDP on a PPP basis. The United States remains in first place with a 17.1 percent share and China trails it at 14.9 percent. Japan, while still the world’s third largest economy in nominal terms, holds a 4.8 percent share of global wealth. PPP is particularly important in the study of poverty levels and quality of life across countries as it adjusts for price changes across national economies. PPP, for example, is used by the World Bank in its poverty threshold of $1.25 per day per person. Given that a dollar can buy more in some countries and less in others, PPP-based comparative analyses allow for comparisons between economies. For India, the bad news is that its GDP per captia in PPP terms still ranks the country 127 out 199 — a reminder that the country has much to do in combating poverty. ”The largest economies were not the richest, as shown in the ranking of GDP per capita. The middle-in-come economies with large economies also had large populations, setting the stage for continued growth,” the report noted.
Posted on: Fri, 02 May 2014 01:40:31 +0000
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