According to Nikkei Asia, India’s nominal GDP will likely surpass Japan’s by 2025, thereby becoming the world’s 4th largest economy. The above forecast is given in the latest updated report of the International Monetary Fund (IMF).
The IMF estimates that India’s GDP could reach 4.330 billion USD in 2025, 1 year earlier than the previous forecast and higher than Japan’s 4.310 billion USD. In the latest update, the IMF slightly adjusted the GDP forecasts of both countries based on local currency exchange rates.
Accordingly, the devaluation of the Japanese yen against the USD seems to reduce the size of the country’s economy if measured in “greenbacks”. The Indian rupee has remained largely unchanged in value against the US dollar since early 2023.
