India set to eclipse US with global economic growth share by 2024

India is expected to become a much bigger driver of global growth than the world’s current largest economy, the US, in just five years, according to Bloomberg calculations based on International Monetary Fund (IMF) data.

The global economic watchdog warned about the risks of the slowdown that the world is currently facing as it downgraded growth to three percent, the weakest since the global financial crisis. This is the result of multiple factors, including the US-China trade war, geopolitical tensions, as well as Brexit-related risks, according to the IMF’s World Economic Outlook released earlier this week.

However, some countries are projected to contribute more to the development of the world economy. China is set to remain the indisputable leader despite its share is set to fall from 32.7 percent in 2019 to 28.3 percent in 2024.

India’s growth can outpace that of the US, Bloomberg reported, citing IMF estimates adjusted for purchasing power parity (PPP). In five years, the South Asian nation will account for 15.5 percent of global growth, jumping two percent from the current figures. Meanwhile, the US contribution is set to fall by more than 3.5 percent from its current 13.8 percent, to 9.2 percent.

Other changes in the top five include Russia pushing Japan off fifth place with its share of GDP growth expected to stay at its current level of two percent in 2024. Indonesia will remain in fourth place.

This week, the IMF cut India’s GDP growth forecast for 2019 to 6.1 percent, which is 1.2 percent lower than the body’s April projections. Despite the gloomier prognosis, the country’s finance minister argued on Thursday that the Indian economy is “still growing as the fastest,” although it remains far behind China. 

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