Which of the following statements regarding the IMF's World Economic Outlook and GDP measurement is/are correct?
1. The WEO projected India to surpass Japan to become the world's fourth-largest economy in nominal GDP terms.
2. A country's global ranking in nominal GDP is always identical to its ranking based on Purchasing Power Parity (PPP).

Question

Accepted Answer

1 only — Statement 1 is correct as per WEO 2025 projections. Statement 2 is incorrect; India is the third-largest economy by PPP but projected to be fourth in nominal terms, as PPP adjusts for differing price levels across countries rather than relying solely on market exchange rates.

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