India Soars Ahead Of The UK To Become The World’s 5th Biggest Economy.

In the face of a brutal cost-of-living shock, Britain has dropped behind India to become the 6th largest economy in the world.

The former British colony leaped past the UK in the final 3 months of 2021 to become the 5th-biggest economy. IMF GDP figures indicate that India extended its lead in the first quarter based on US dollars.

For the new Prime Minister, the UK's decline down the international rankings is an unwelcome backdrop. Conservative Party members will choose Boris Johnson’s successor on Monday. Foreign Secretary Liz Truss is expected to beat former Chancellor of the Exchequer Rishi Sunak.

The winner will take over a nation facing the fastest inflation in 4 decades and rising risks of a recession that the Bank of England says may last well into 2024.

By contrast, the Indian economy is forecast to grow more than 7% this year. This quarter, a world-beating rebound in Indian stocks has just seen their weighting rise to the 2nd spot in the MSCI Emerging Markets Index, trailing only China’s.

The calculations were done using the IMF database and historical exchange rates on the Bloomberg terminal.