India has become the world’s 3rd largest economy from being the 10th largest in 2005, by beating Japan. The USA retains its top rank, closely followed by China, say the latest figures released by the International Comparison Program (ICP), hosted at the World Bank.
The global production of goods and services was $ 90 trillion in 2011 of which almost half came from low and middle-income countries. Six of the world’s 12 largest economies are middle-income economies. Put together, the 12 largest economies account for two-thirds of global economy and 59 % population, it says.
The six largest middle-income economies — China, India, Russia, Brazil, Indonesia and Mexico — account for 32% of global GDP, while the six largest high-income economies — US, Japan, Germany, France, UK and Italy — account for 33%.
Asia and the Pacific, including China and India, contribute 30 % of global GDP, Eurostat-OECD 54 %, Latin America 5.5 % (excluding Mexico and Argentina), Africa and Western Asia about 4.5 % each. China, with 27%, has the largest share of the global expenditure on investment followed by the USA at 13 %.
India, Japan and Indonesia follow them with their share of 7 %, 4 %, and 3 % respectively.