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India’s GDP Growth Rate Surpassed China for Three Years in a Row

Well-known Chinese news site Sina recently reported that, according to the official numbers that the Indian government just released, India’s 2016 fiscal year GDP growth rate was 7.1 percent. This has been the third year in a row for India to have a higher growth rate than China. The Indian government and the private sector investments suffered a very slow growth rate, at two percent. However personal spending grew very strongly, at nine percent. In the meantime, based on the newly released numbers, India’s disruptive abolition of large bills near the end of 2016 did cause some negative impact on consumer spending. The World Bank estimated that India will enjoy a 7.2 percent growth in 2017 and 7.5 percent in 2018. The International Monetary Fund expects India’s 2018 growth will even reach 7.7 percent. Experts expressed the belief that India’s tax reform will bring growth in the future. China’s official 2016 GDP growth rate was reported to be 6.7 percent.

Source: Sina, May 31, 2017