Rapidly Depreciating Rupee Shrinks Economy by More Than 20% in Dollar Terms

There are two ways of computing this. Given that I'm kind of lazy I just compute the rate of return on the exchange rate after grossing up the 25 rupees we needed to make a dollar six months ago by about 1/2 the expected growth rate of 5.2% for 2008. The long way is of course to compute the size of our economy in USD on these two dates and get a rate of return.

So Ramgoolam is absolutely right to say, at least in dollar terms, that we're not in a recession: we're in a depression!