In 2021, India's real GDP rose 9% over the previous year and reached $2,962 billion
China is one of the fastest-growing economies in the world, with an annual real GDP growth rate of 8%
COVID-19, the Russia-Ukraine war, and rising inflation have caused a slowdown in the global economic growth
Outlook on Global Economy Growth
Real GDP growth is GDP’s annual percentage growth rate at market prices based on constant local currency.
The US, China, Japan, Germany, and India are the world's top five economies in terms of real GDP. The US is the largest economy in the world, followed by China. In 2021, the US real GDP grew at a rate of 5.7% over the previous year and became an $18.7 trillion economy. The US real GDP grew at a CAGR of 2.0% between 2010 and 2021. China is one of the fastest-growing economies in the world, with an annual real GDP growth rate of 8%; it grew at a CAGR of 7% between 2010 and 2021.
Overview of India’s Real GDP Growth
India is the third-largest economy in Asia. In 2021, India's real GDP rose 9% over the previous year and reached $3 trillion. Between 2010 and 2021, India's economy expanded by a CAGR of 5.3%. However, an increase in COVID-19 cases and rising oil prices amid conflict between Russia and Ukraine dimmed India's growth outlook.
Factors Affecting the Global Economy
Russia-Ukraine war:
A prolonged conflict between Russia and Ukraine will continue to affect global economic growth. Investment and trade have been adversely affected due to the war as economic sanctions have been imposed on Russia, and several big companies have stopped their operations in the country.
Rising Inflation and Interest Rates:
The inflation rate in developing and advanced economies have been rising, causing central banks to tighten monetary policy and raise interest rates to control price rises. However, a sustained rise in interest rates could push some economies into financial distress.
A rise in COVID-19 cases:
As a result of Omicron, a new variant of COVID-19, more cases have been reported worldwide, resulting in the disruption of supply chain management. However, the global vaccination drive has reduced the fatality from COVID-19.
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