- The world may face another recession
- China must wait to become number one in the world
Another key assessment of the report is related to China. China, which is poised to become the world’s number one economy, will have to wait a while longer to overtake the United States, the report said. Saber predicts that China will become the world’s best economy by 2030, two years after the World Economic League table report predicted last year. Inflation will be the major challenge facing countries in the years to come.
We need to know how the world economy is coping with inflation. Inflation in the U.S. has now reached 6.8 percent, said Douglas McWilliams, deputy chairman of Saber. Economic reforms to curb inflation need to be implemented urgently. Otherwise, he added, the world would have to witness another recession in 2023 or 2024. According to the report, Germany is on track to overtake Japan by 2033 in terms of economic output. By 2036, Russia could be one of the top 10 economies in the world. According to the report, Indonesia will be ranked ninth in 2034.
The recent inflation report has also worried Indian markets. Inflation based on the Consumer Price Index (CPI) stood at 4.91 per cent in November. It was 4.48 per cent in October. The setback was due to rising food and fuel prices. At the same time, the only relief is that inflation is below the RBI’s target of 2-6 per cent. Apart from food items, the prices of non-food items are also on the rise in the country. Inflation based on the Wholesale Price Index (WPI) has hit a five-month high in the country. The index had gained 12.54 per cent in October, compared to 10.66 per cent in September.
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The index was adversely affected by rising fuel prices. The index has doubled for the seventh month in a row. Inflation, as measured by the Wholesale Price Index (WPI), was 1.31 per cent during the same period last year. At the same time, the rapid return of markets after Kovid validates Seber’s report on India. The country’s gross domestic product (GDP) grew in the last quarter of the current financial year. During July-September, the country grew by 8.4 per cent. Despite the 20.1 per cent growth in April-June, it was the impact of the lockdowns. GDP growth in the second quarter of 2020-2021 was Rs 32.97 lakh crore. 35.73 crore in the previous quarter.
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