UK slips to world’s sixth-largest economy, behind India

International Business News  –  Britain has fallen behind India to become the world’s sixth-largest economy, in another blow to the government as it grapples with a brutal cost-of-living crisis.

India overtook the UK to become the fifth-largest economy in the final three months of 2021, the report said. The ranking is based on gross domestic product (GDP) figures in dollar terms by the International Monetary Fund, and India widened its lead over Britain in the first quarter of this year.

Britain’s slide in international rankings is an unwelcome backdrop for the new prime minister. Conservative Party members will choose Boris Johnson’s successor on the 5th. The winner will take over a country facing the fastest inflation in 40 years and a growing risk of recession. The Bank of England says the recession is likely to last until 2024.

In contrast, India’s economy is expected to grow by more than 7% this year. Indian stocks were the world’s biggest gainer this quarter, rising to the second-highest weighting on the MSCI Emerging Markets index behind China.

The IMF’s own projections show that in dollar terms, India will overtake Britain this year as an economic power behind the United States, China, Japan and Germany. A decade ago, India was the 11th largest economy and the UK was the fifth.

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