World Bank’s “Global Economic Prospects Report” predicts India’s growth as 8.3%

What is the News?

The World Bank has released the Global Economic Prospects Report.

About the Global Economic Prospects Report:

• Global Economic Prospects is a World Bank Group flagship report. It is issued twice a year, in January and June.
• Aim: To examine global economic developments and prospects with a special focus on emerging markets and developing economies.

Key Findings of Global Economic Prospects Report related to India:

• The World Bank has reduced its growth forecast for India for the 2021-’22 financial year to 8.3% from 10.1% estimated in April.
  • Reason: It has attributed it to the devastating second wave of the coronavirus pandemic that slowed down the economic revival in early 2021.
• Moreover, the report has said that the economic activity in India would likely follow a similar but less pronounced ‘collapse and recovery’ trend seen during the first wave.

Key Global Findings of Global Economic Prospects Report:

• The global economy is expected to expand 5.6% in 2021. This is the fastest post-recession pace in 80 years, largely due to strong rebounds from a few major economies.
• However, many emerging markets and developing economies continue to struggle due to the following reasons,
  • A resurgence of COVID-19 cases,
  • Lagging vaccination progress
  • The withdrawal of policy support in some instances.
• Among major economies, the growth of the US is projected to reach 6.8% this year. This is due to large-scale fiscal support and the easing of pandemic restrictions.
• Among emerging markets and developing economies, China is anticipated to rebound to 8.5% this year, reflecting an increase in demand.

Source: The Hindu