What Recession? India’s Economy Poised to Expand More Quickly than China’s

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The Great Wall of China / TIM GRAHAM / GETTY

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.

(See China and India: which economy is better?)

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).

(Read: India’s battle with inflation)

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.

(via Shanghaiist)