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As we come close to the end of the year 2024, let’s take a brief look at what happened in the ‘economic ecosystem’. One word that was kept on loop in the news articles, podcasts, TV shows was ‘SHOCKING’, as major economies opted for such nerve-wracking decisions throughout the year.
The Talk Regarding the Largest Economies
With India surpassing the UK economy, it is very likely that they will become the fourth-largest economy of the world by the Q4 of FY 2024-25. The recent growth trends clearly indicate towards India crossing the US $4 trillion mark to overtake Japan’s standing. This is widely driven by the industrial growth in India and the ‘Aatmanirbhar Bharat Yojana’ has contributed a lot as well, developing the MSMEs’ contributions towards the GDP and also boosting the growth and export potential of the existing big companies, leading to more and more contribution.
One thing to be noted in the entire discussion of the biggest economies of the world is stature of the nations that India have overtaken to achieve the standing. India was colonised by the UK and now the major companies of the UK have Indians as their office bearers. Moving forward, it would be an interesting outlook how 2025 shapes up for the relations between the UK and other major economies, considering the fact that India might be one of the decision movers in terms of global economic decision-making is concerned.
What Made India So Resilient?
When you look at the decisions taken up by the Monetary Policy Committee (MPC), it hints towards Indian central bank, the Reserve Bank of India’s (RBI) firm stance on bringing the inflation down to the desired levels or the targeted levels. However, this might take some time but the resilience shown in the decision-making is commendable with last hike coming way back in February 2024, and that too of a 25bps hike (from 6.25% to 6.50%). And, the rates have been kept at bay for the 11th time in a row, which came in a surprise for a lot of the experts.
On the other side, the RBI will look to go for a reduction in the initial months of 2025 but one shouldn’t be surprised if there’s no change at all. The new RBI Governor, Sanjay Malhotra has some big issues at his disposal. Several Continents’ Economic Movements Covered This year, Economicstaan, took a step ahead in a direction of covering economies in a diversified manner so that you don’t get to know just about the major economies of the world but also have a clear idea about the happenings around the globe of how different countries are shaping their economy and what are their patterns when it comes to correcting the inflation and development of their nation.
As many as five continents were covered by us and the continents include Asia, Africa, Australia, Europe, and North America, with a total of 11 countries have been covered. What 2025 Await Us!
With 2025 in close sight, we can hope for some positive decisions coming our way, rather than having surprising decisions. Some of the key expectations could be:
India could be in for a rollercoaster ride in 2025 with a new RBI Governor in place and also a lot of issues like inflation, job losses, cryptocurrency, GST irregularities, and a few more revolving around.
The US economy might be experiencing a recession sometime in the mid of 2025, maybe Q2 or Q3 of FY 2025-26.
With the governance instability in place and many questions revolving around the sanctions, tariffs, immigration, etc. in the United States, it would be the economy to watch out for in 2025.
Will BRICS decision of having cross-border settlements in local currencies be a advantage for the member nations or will it impact adversely?
The first quarter of 2025 will speak a lot about the probable economic movements throughout the year given the fact that recession doesn’t affect too much. Stay tuned with Economicstaan for in-depth analyses of the exciting economic events to follow.
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Points well put forward.
Good wrap up for the year