According to the latest data released by the IMF, India has slipped from fourth to sixth place, affected by the strong dollar and weak rupee.
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According to the latest data released by the International Monetary Fund (IMF), India has slipped to the sixth position among the world's largest economies. India, which had reached the fourth position last year, has now slipped down in terms of its gross domestic product (GDP) measured in US dollars. Indian media have cited the strengthening of the US dollar, the continued weakening of the Indian rupee, and India's revision of the base year for GDP as the reason for the decline. Currently, the US, China, Germany, Japan, and the UK are ahead of India. In September 2022, India surpassed the UK to become the world's fifth largest economy. While India was on a journey of rapid economic growth, it was estimated that India would overtake both these economies by 2029 due to the economic slowdown in Germany and Japan. However, before India surpassed Germany, Germany surpassed Japan.
According to the Indian Express, in May last year, NITI Aayog chief BVR Subramanian had announced that India has overtaken Japan to become the world's fourth largest economy. However, despite expectations of coming in third place, it has slipped two places this time to become the sixth.
According to IMF estimates, the world's largest, the US economy, is worth about $3.1 trillion, while the second-largest, China's economy is worth more than $2.0 trillion. Germany is in third place with about $5 trillion and Japan is in fourth place with about $4.4 trillion. Britain has risen to fifth place with about $4.3 trillion.
France, Italy, Canada and Brazil are also in the top 10 largest economies. European countries are ahead in terms of per capita national income. Liechtenstein, Luxembourg, Ireland, Switzerland, Iceland, Singapore, Norway, the United States, Qatar and San Marino are on this list. While the US economy appears to be stable during this period, some European economies, especially Germany, have slowed down and some emerging economies have shown mixed performance.
The IMF has stated that the growth of the world economy is uneven and that global growth will remain moderate due to various reasons including war. The organization's latest analysis also shows that inflation, geopolitical tensions and tight financial conditions have increased risks. The IMF estimates that global inflation will increase moderately in the year 2026 and the economic growth rate will be 3.1 percent.
According to IMF estimates, Nepal's economy is around 46 billion US dollars. Economic growth is expected to be 3 percent. The organization believes that Nepal's per capita national income is around $1,550, indicating that Nepal's recovery will be slow amid domestic fluctuations and global instability.
