Growth roles have reversed among the world’s two most exciting emerging markets.
Here’s the latest chart from Deutsche Bank economist Torsten Sløk. It shows growth forecasts for India increasing as China slows down, with the former surpassing the latter by 2016.
China has been cracking down on everything from loose credit to corporate corruption, all of which has been pressuring growth. Meanwhile, India recently voted in new leaders who have a mandate to do what it takes to get growth going.
This is pretty unprecedented, at least in recent economic history. Here are the growth rates of the two countries since 2000 according to the world bank: