Davos: Former RBI Governor Raghuram Rajan said on Tuesday that it is too early to think that India will replace China in terms of influencing global economic growth.
However, the situation may change going forward as India is already the fifth largest economy in the world, it is growing and has the potential to continue expanding.
The recently released outlook of chief economists at the World Economic Forum (WEF) press briefing saw most of them expecting a global recession in 2023, Rajan Said that any improvement in the Chinese economy would certainly boost global growth prospects.
He said that at this time the policy makers are also looking at the labor market and the housing market.
Referring to America, he said that houses are not being sold there, but the prices are not falling.
“Is it all gloom and doom? Probably not…if Mr. Putin decides to end the war, there will definitely be a reverse,” Rajan said.
He said that there are still 12 months left and if China improves it could be good.
“China is working its way through the pandemic and there will be a Chinese recovery this year, probably as early as March or April. Some of it will be in domestic services which may have no impact outside. But any recovery in manufacturing may have some effect.” effect through softening of outside prices,” he said.
When asked about India, Rajan said, “It is too early to argue that India will replace China because India is still a very small economy.”
“But this may change with time as India is already the fifth largest economy and it may keep growing,” he added.
However, the situation may change going forward as India is already the fifth largest economy in the world, it is growing and has the potential to continue expanding.
The recently released outlook of chief economists at the World Economic Forum (WEF) press briefing saw most of them expecting a global recession in 2023, Rajan Said that any improvement in the Chinese economy would certainly boost global growth prospects.
He said that at this time the policy makers are also looking at the labor market and the housing market.
Referring to America, he said that houses are not being sold there, but the prices are not falling.
“Is it all gloom and doom? Probably not…if Mr. Putin decides to end the war, there will definitely be a reverse,” Rajan said.
He said that there are still 12 months left and if China improves it could be good.
“China is working its way through the pandemic and there will be a Chinese recovery this year, probably as early as March or April. Some of it will be in domestic services which may have no impact outside. But any recovery in manufacturing may have some effect.” effect through softening of outside prices,” he said.
When asked about India, Rajan said, “It is too early to argue that India will replace China because India is still a very small economy.”
“But this may change with time as India is already the fifth largest economy and it may keep growing,” he added.