World Economy Slowed as India's GDP Slightly Fell in 2012-13 in USD terms

[Chinese-Dragon]

@RiazHaq how much did pakistani economy grow/shrink in dollar term... during same period..

First column is 2011 data, second column is 2012 data.

List of countries by GDP (nominal) - Wikipedia, the free encyclopedia

Sourced from World Bank, IMF, etc.

The Indian economy shrunk a bit in this period, while the Pakistani economy expanded slightly.

China's economy went up by about 1 trillion in the same period, which was the largest increase of any country by a big margin.

USA comes second, they added about half a trillion to their GDP in the same period.

The USA and China have the biggest base economies, so even a small "percentage" growth rate can mean a huge addition to GDP per year.

 

[farhan_9909]

First column is 2011 data, second column is 2012 data.

List of countries by GDP (nominal) - Wikipedia, the free encyclopedia

Sourced from World Bank, IMF, etc.

The Indian economy shrunk a bit in this period, while the Pakistani economy expanded slightly.

China's economy went up by about 1 trillion in the same period, which was the largest increase of any country by a big margin.

USA comes second, they added about half a trillion to their GDP in the same period.

The USA and China have the biggest base economies, so even a small "percentage" growth rate can mean a huge addition to GDP per year.

PAK GDP expanded with almost 20billion dollars addition for the last 2 year despite the growth rate of 3.7%..how is this possible?

210billion dollars in 2011
233billion dollars in 2012
252.6billion dollars in 2013

can you explain me this how?despite the slow growth

also if you check in the above list

INDIAN GDP between 2004-07 expanded by almost 80-100billion dollars each year despite the growth rate of only 7-8% which means a increase about 40-45billon dollars only?than why such an huge increases.?

 

[Chinese-Dragon]

PAK GDP expanded with almost 20billion dollars addition for the last 2 year despite the growth rate of 3.7%..how is this possible?

210billion dollars in 2011
233billion dollars in 2012
252.6billion dollars in 2013

can you explain me this how?despite the slow growth

Increase in GDP is not just the Real growth rate (the Real growth rate is the most commonly quoted number). It is the Nominal growth rate.

Nominal growth rate = Real growth rate + Inflation.

And you also have to take currency movement into account.

It is a combination of all factors. If you have a lot of inflation, your nominal GDP can rise fast.

Whereas India's economy shrunk in dollar GDP terms because of the fall of the Rupee.

 

[474474]

Increase in GDP is not just the Real growth rate (the Real growth rate is the most commonly quoted number). It is the Nominal growth rate.

Nominal growth rate = Real growth rate + Inflation.

And you also have to take currency movement into account.

It is a combination of all factors. If you have a lot of inflation, your nominal GDP can rise fast.

Whereas India's economy shrunk in dollar GDP terms because of the fall of the Rupee.

I've noticed from experience life is cheaper in Pakistan despite high inflation compared to low inflation western countries, why is that?

 

[Chinese-Dragon]

I've noticed from experience life is cheaper in Pakistan despite high inflation compared to low inflation western countries, why is that?

The Inflation rate, is the percentage rate of change in prices.

But because developing countries (like China/Pakistan/India) have low base prices, even a high percentage rate of inflation won't raise it too much, because the base prices are low to begin with.

Still it is not good to have a high inflation rate, since percentages can build up over time.

 

[Chinese-Dragon]

India's GDP already fell from 2011 to 2012, now with the Rupee collapsing further let's see how far down the list India sinks this time.

 

[Khalsa97]

This kind of attitude will ensure that India's growth rate will remain at least 30% below China‘s for the next 10-20 years。

By dollars terms，the gap will be even wider。

The Indian economy is in a sh1t hole。India has exhausted all policy avenues for economic growth。

China's is a different story。It is in the midst of rebalancing and restructuring its investment-led growth with all the policy doors open：high bank reserve ratio（upwards of 20% compared with India's lowly 3-4%）、high interest rates comapred with CPI and PPI（5-6%、2%、-% respectively）、huge current account surplus（in hundreds of billions）、low fiscal deficit as a % of GDP、strict regulations limiting the purchase of properties、cars etc，and other brakes on the economy，all of which can be relaxed to drive economic growth if the government so desires。But 7.5% growth is enough considering the ongoing domestic rebalancing and shity external environment。China is in no hurry to play the role of global recovery engine。The best time to sort out your own problem is when the others are doing worse。

Seriously lmao, who brought china into this?

 

[Chinese-Dragon]

Seriously lmao, who brought china into this?

The Indians who post China economy bashing threads.

In return for that bashing, we offer insightful analysis into India's own economy. What a great deal for you guys.

 

[Khalsa97]

The Indians who post China economy bashing threads.

In return for that bashing, we offer insightful analysis into India's own economy. What a great deal for you guys.

I haven't seen one of those. Care to show me some recent examples? And if your that desperate for "payback" start another thread, don't start making comparisons on a thread that has nothing to do with China because honestly you look incredibly desperate lmao. And also have you got any credentials to back up your "insightful analysis" such as a degree?

 

[Chinese-Dragon]

I haven't seen one of those. Care to show me some recent examples? And if your that desperate for "payback" start another thread, don't start making comparisons on a thread that has nothing to do with China because honestly you look incredibly desperate lmao. And also have you got any credentials to back up your "insightful analysis" such as a degree?

I can comment on any thread, and if you don't like it, I couldn't care less.

According to IMF numbers, India's economy shrunk from 2011 to 2012.

And with the Rupee collapsing, India's GDP is set to shrink further. That's what the thread is about, did you read the thread title?

 

[RiazHaq]

Here's Wall Street Fool on coming "collapse" of Indian economy:

I hate being a narcissist and an ego-maniac, but the truth is: I TOLD YOU SO.

If you haven’t already, I highly recommend READING THIS ARTICLE, that I had written last month (April 2013), and THIS ARTICLE (May 2013), outlining the exact process/method/path to India’s Inevitable Economic Collapse. Needless to say, India’s GDP just took a dump + The Reserve Bank of India (RBI) insisting that it wont cut rates as there is a significant UPSIDE RISK TO INFLATION, spooking investors and resulting in a highly coordinated (Panic) sell-off.

Here’s the piece from Times of India:

Pulled down by poor performance of farm, manufacturing and mining sectors, economic growth slowed to 4.8% in the January-March quarter and fell to a decade’s low of 5% for the entire 2012-13 fiscal.

Belying hopes of further rate cuts, the Reserve Bank governor D Subbarao’s comments that there are still upsides risks to inflation spooked stock markets. Additionally, RBI’s concern about widening country’s current account deficit amid rupee falling to over 10-month lows, also put pressure.

In this realm of reality, that we all inhabit, you simply cannot have both, Economic Growth and Low Inflation at the same time. Something has to give.

So here’s what I think is gonna happen:

The market players (American Hedge Funds) are going to rob the RBI at gun-point, just like Greece, and no-one will be able to stop them. The RBI will cave, and go BOJ on everyone’s ***.

India's Inevitable Economic Collapse | Wall Street Fool

 

[Azazel]

First column is 2011 data, second column is 2012 data.

List of countries by GDP (nominal) - Wikipedia, the free encyclopedia

Sourced from World Bank, IMF, etc.

The Indian economy shrunk a bit in this period, while the Pakistani economy expanded slightly.

China's economy went up by about 1 trillion in the same period, which was the largest increase of any country by a big margin.

USA comes second, they added about half a trillion to their GDP in the same period.

The USA and China have the biggest base economies, so even a small "percentage" growth rate can mean a huge addition to GDP per year.

Indian economy never shrunk in any period.Its the nominal GDP figure that did.Both are not the same thing.Get your facts straight.

 

[Chinese-Dragon]

Indian economy never shrunk in any period.Its the nominal GDP figure that did.Both are not the same thing.Get your facts straight.

OK you're right, my mistake.

I'll rephrase:

India's GDP shrunk from 2011 to 2012. And considering the fall of the Rupee, India's GDP is likely to shrink further into 2013.

 

[Azazel]

OK you're right, my mistake.

I'll rephrase:

India's GDP shrunk from 2011 to 2012. And considering the fall of the Rupee, India's GDP is likely to shrink further into 2013.

No you are wrong again.You see the problem is you don't have a clue what you are talking about.Its the nominal GDP or current dollar GDP..GDP and nominal GDP are two entirely different things.

 

[RiazHaq]

Here's Hindustan Times on Indian stocks collapse:


Stung by the rupee hitting historic low, stock markets on Tuesday collapsed on all-round selling with the S&P BSE Sensex nosediving by 449.22 points to end below the 19,000-mark, edging India out of the trillion dollar club.


Sentiment was extremely poor on Dalal Street as the rupee plunged to record low of 61.80 against the US dollar, stoking fears of a higher current account gap as import costs surge.

The Bombay Stock Exchange 30-share barometer resumed weak and continued its downslide to end at 18,733.04, a steep fall of 449.22 points or 2.34 %. In the last ten trading sessions, Sensex has fallen in nine days while yesterday has managed to settle in positive terrain.

After today's plunge and the rupee's decline, India's market capitalisation stood at Rs. 60.18 lakh crore, which translates to $989 billion at exchange rate of 60.8 versus the dollar. The rupee retreated from record lows to trade at 60.8 levels at 1710 hours.

Dipen Shah, Head of PCG Research, Kotak Securities said: "Markets ended sharply lower on the back of continuing concerns about the rupee and some disappointing results. The rupee traded at a new low and that caused concerns in market." ...

Stocks plunge on weak rupee, India out of trillion dollar club - Hindustan Times