IMF: India to overtake Japan in 2025 and Germany in 2027
Report
5 min read
According to the recently released data by the International Monetary Fund (IMF), the Indian economy is likely to overtake Japan in 2025 and Germany in 2027 to become the world’s third largest economy after the United States of America and China.
The positive report of the IMF comes after a World Bank report which suggested that India needs to grow at an average annual growth rate of 7.8 percent to achieve the target of Viksit Bharat or a developed country by 2047.
Main Points of the IMF Data
The following are the main points of the IMF Data.
- The real gross domestic product (GDP) of India has doubled from $2.1 trillion in 2015 to $4.3 trillion in 2025.
- The growth rate of India was 105 percent which is the highest growth rate amongst the major economies.
- The growth rate of the United States during this period was 66 percent and China was 76 percent during this period.
- Surprisingly Japan whose real GDP was 4.4 trillion in 2015 remained at 4.4 trillion in 2025,showing a growth rate of 0 percent.
- IMF estimates that with the current growth rate India is expected to surpass Japan in 2025 and Germany in 2027.
- India is currently the fifth-largest economy in the world after the United States of America, China, Germany, and Japan.
USA is still the largest economy in the World
The IMF data mentions that the United States remains the largest economy in the world with a real GDP of $ 30.3 trillion in 2025 as compared to $ 18.3 trillion in 2015.
China with an impressive growth rate of 76 % has increased its real GDP from $11.2 trillion in 2015 to $19.5 trillion in 2025.
Many had projected China to overtake the United States as the world’s largest economy. However economic disruption in China due to the covid pandemic and the continuing problem in its real estate sector has slowed its economic growth rate.
On the other hand, the United States economy has shown resilience and is expected to show strong growth in the future.
Performance of the top Major Economies in the world (2015-2025)
Following is the list of the top 11 countries of the world and their performance from 2015 to 2025.
|
Rank in the world (Real GDP) |
Country |
Real GDP in 2015 (in US Dollars and in Trillion) |
Real GDP in 2025 (in US Dollars and in Trillion |
Percentage growth in the last 10 years |
|
1 |
United States |
11.8 |
30.3 |
66 |
|
2 |
China |
11.1 |
19.5 |
76 |
|
3 |
Germany |
3.4 |
4.9 |
44 |
|
4 |
Japan |
4.4 |
4.4 |
0 |
|
5 |
India |
2.1 |
4.3 |
105 |
|
6 |
United Kingdom |
2.9 |
3.7 |
28 |
|
7 |
France |
2.4 |
3.3 |
38 |
|
8 |
Italy |
1.8 |
2.5 |
39 |
|
9 |
Canada |
1.6 |
2.3 |
44 |
|
10 |
Brazil |
1.8 |
2.3 |
28 |
|
11 |
Russia |
1.4 |
2.2 |
57 |
About International Monetary Fund (IMF)
The International Monetary Fund is a multilateral institution that was set up in 1944.
The IMF provides loans to member countries facing economic crises/balance of payment crises.
Members;189 countries.
Headquarters: Washington D.C, USA
Managing Director: Kristalina Georgieva
Important reports issued by the IMF
- World Economic Outlook
- Global Financial Stability Report
- Fiscal Monitor
Also Read:
World Bank: India needs 7.8 % growth to become Viksit Bharat by 2047
