Indian Economy To Grow, While Gloom Deepens in Japan

13 February 2009

NEW DELHI/TOKYO: The Indian economy is set to grow by 7% this year, according to Pranab Mukherjee, the country's minister for external affairs. By contrast, a survey of Japanese think tanks found that they do not expect the country's economy to expand until 2010 at the earliest.

While forecasting a positive outlook for the year, Mukherjee argued the Indian economy would not be immune to the global financial downturn, but would  seek to drive growth in a variety of ways.

By contrast, a survey of 35 Japanese think tanks by the government's Economic Planning Association found the country's economy is expected to contract by 2.6% this year, the largest decline since 1998.

Consensus figures suggest that Japanese GDP shrank by more than 10% last year, and growth is only likely to resume in 2010, when an improvement of 1.2% is currently predicted.

Data sourced from Times of India/Asahi; additional content by WARC staff