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India’s falling economic growth is worrisome…

February 15, 2021
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India is now the 164th fastest growing nation in the world, among 193! It’s GDP saw a contraction of 10.29 percent in 2020!! Given that India was among the absolute front runners till 5 years ago this is shocking. Just in a matter of few years, India has slid rapidly from being a global showcase of a model of economic development through liberal democratic methods to a strife ridden majoritarian state in economic despair.

With a projected GDP growth rate of 26.21% in 2020, Guyana is the fastest growing economy in the world. Guyana is followed by South Sudan (4.11%), Bangladesh (3.80%), and Egypt (3.55%). Only these four countries have a GDP growth rate above 3%. Twenty-six economies will experience a positive growth rate in 2020. Out of them, twelve each is located in Asia and Africa, each in South America and the Oceania continent. All the European and North American economies will fail to expand. Twelve economies will grow between 1-2% and ten economies between 0-1%.

Out of 193 economies, 167 economies will see a negative growth rate in 2020. These 167 economies account for almost 79% of the world economy, with an aggregate total of $66 trillion. Libya has the lowest growth, with a 66.65% contraction as four economies will see a contraction below 25% or more, including Macao SAR, Lebanon, and Venezuela.

China is the only trillion-dollar economy with a positive GDP growth rate, followed by Indonesia with the 2nd best figure of -1.50%. Spain, Italy, and India will see a double-digit contraction in their trillion-dollar economy.

Norway has the least contraction among economies having GDP per capita above $50k, followed by Ireland. Taiwan Province of China has the highest GDP per capita, followed by Brunei Darussalam and China among growing economies. Only three growing economies are in the $10,000 per capita GDP club.