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)