India pips Japan in GDP based on purchasing power parity

17-Sep-2018

India has overtaken Japan to hold the second largest regional share of Asia and Pacific region’s GDP, based on purchasing power parity, with the country’s share going up from 14.6 per cent in 2000 to 17.3 per cent in 2017, an Asian Development Bank (ADB) report said on Monday. China accounted for 42.7 per cent of the region’s total output at purchasing power parity (PPP) in 2017 compared to 25.1 per cent in 2000. India held the next largest regional share of GDP at PPP in 2017 at 17.3 per cent during the year, up from 14.6 per cent in 2000.

Japan moved to the third spot, with a 10.2 per cent share in 2017, down from 23.1 per cent in 2000. PPP compares how many goods and services an exchange-rate-adjusted unit of money can purchase in different countries. Normally GDP shows the total productive output of a country, while PPP is an applied doctrine of the comparative value of money in different countries. The report said the three largest economies in Asia and the Pacific – People’s

Republic of China (PRC), India and Japan – accounted for over 70 per cent of the region’s GDP at PPP in 2017, up from about 63 per cent in 2000. As per the ADB report on ‘Key Indicators for Asia and the Pacific 2018’, the Asia and Pacific region accounts for more than two fifths of the share of global GDP in PPP terms.

Asia and the Pacific’s growing share of global output, which increased from 30.1 per cent to 42.6 per cent during the review period, came at the expense of the global shares of North America, Europe, South America, and the rest of the world, which declined by 6.8, 4.7, 1.3, and 0.3 percentage points, respectively.

The report further said that combined population of Asia and the Pacific reached 4.14 billion in 2017, or 54.8 per cent of the world’s total population, down from 56 per cent in 2000. In 2017, five of the 10 most populous economies in the world were located in Asia and the Pacific, including the two most populous, China (1.39 billion) and India (131 billion).

The region’s population is gradually ageing amid increasing life expectancy and decreasing fertility rates. In 2050, the number of people in Asia and the Pacific over the age of 65 is expected to exceed the number under the age of 15, the report said. The report provides statistics on a comprehensive set of economic, financial, social, and environmental indicators for the 48 regional members of the ADB.

Source: BUSINESS TODAY