Thought for the day

Indian GDP Growth Leaves Pakistan Far Behind

Rather as in the Cricket World Cup rivalry between the two countries

Last updated: 21 May 2024
Comparing the economic performance of India and Pakistan is not so easy, as neither country excels in the production of reliable GDP data. Indian GDP data is rated C grade by World Economics, which theoretically makes the numbers believable. Pakistan clearly lags with D Grade GDP data. However Indian data is classified as at the bottom of the C grated countries, and Pakistan not so far from the top of the D classification. So, in theory the difference in data utility may not be great.

Where, Pakistan lags badly is in the crucial Governance field. Poor Governance is frequently associated with Government interference with economic data (studies have shown that economic data from countries ruled by Dictators can be exaggerated by as much as 30%. Whilst not an out and out dictatorship, politics in Pakistan appear to be far from those of a tranquil democracy, and there seems no reason to suppose that data manipulation has been greater in India than in Pakistan. On balance it seems likely that Indian GDP data are more reliable than those produced in Pakistan.

Gross Domestic Product: India & Pakistan
GDP in Purchasing Power Parity Terms, Trillions, Int$
Indian GDP Growth Leaves Pakistan Far Behind

World Economics GDP data (in Purchasing Power Parity terms, and adjusted for out of date GDP Base Years, and the size of the Informal economy) suggests it is likely that GDP growth in India has far outstripped that seen in Pakistan over the last quarter century.
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