New World Bank figures suggest the Tiger may outpace the Dragon by 2012.
The figures, released last Sunday, predict China’s growth will slow from 8.7% in 2011 to 8.4% next year. India, meanwhile will speed ahead, with growth 8.4% to 8.7%. The figures are calculated using a measure called purchasing power parity basis, or ‘PPP,’ which is economist slang for ‘what can I get with 10% of my wage?’
The indicator, popularized by the Economist’s Bic Mac Index, isn’t perfect, but it does convey a more realistic sense of what’s going on in the street.
Still, it’s worth keeping in mind that, though growth rates are important , they don’t tell the whole story. China’s economy is about 4 times bigger than India’s economy, with the panda dwarfing the tiger 5.5 to 1.3 (trillion dollars, that is).
So, who wins? The Indian Finance Minister Pranab Mukherjee says economic growth is not a competition, telling NDTV that “India is trying (to achieve high growth rate), but I am not going to compete with anybody.”
Ok sure, but tell that to China.