The balance of economic power in the world is changing rapidly. America, which commanded the global economy for decades, no longer appears to be at the pace it once was. The latest data from the International Monetary Fund (IMF) is testifying that the vehicle of global growth is now riding on the shoulders of Asia, where India and China are seen in the driving seat. China’s share in global real GDP growth has reached 26.6 percent, while India’s contribution has reached 17 percent. In comparison, America’s share is only 9.9 percent. That means India alone is contributing almost double that of America, while China’s share is almost three times that of America. This change shows that the direction of global development is now shifting from west to east.
India-China pair becomes global engine
If the shares of China and India are added, then together they are contributing 43.6 percent to global growth. At the same time, the share of the entire Asia-Pacific region has reached 50 percent. Experts believe that strong domestic demand, huge investment on infrastructure, rapid growth of manufacturing and service sectors have made Asia the new powerhouse of the global economy.
Emerging countries in the list of top countries
Indonesia is at fourth place in the list of countries contributing to global real GDP growth with 3.8 percent. After this, Türkiye is at fifth place with 2.2 percent. From Africa, Nigeria has reached sixth place with 1.5 percent. Whereas Brazil (1.5 percent), Vietnam (1.6 percent), Saudi Arabia (1.7 percent) and Germany (0.9 percent) are also included in the top-10. This picture shows that emerging economies are now playing an important role in global growth.
America is still ahead in nominal GDP
However, in terms of nominal GDP, America’s dominance still persists. The US remains the world’s largest economy with a GDP of $31.82 trillion. China is at second place with $20.65 trillion, Germany at third place with $5.33 trillion and India at fourth place with $4.51 trillion. Despite this, on the growth front the picture is clear that India and China seem to be dictating the pace of the future.
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