Last Updated: January 12, 2023, 15:04 IST
The World Bank in its report titled Navigating the Storm projected India’s GDP growth rate at a robust 6.6 per cent in financial year 2023-24 (FY24) from its earlier projection of an estimated 6.4 percent in 2022-23 (FY23) and cited limited spillover to Asia’s third-largest economy from a global slowdown.
However, it also mentioned that India’s economy is at a better place compared to other emerging countries’ growth. The Bank projected that the downturn in the global economy and growing unpredictability would have an impact on export and investment growth in India.
However, growing government spending on infrastructure and different business-friendly initiatives will attract private capital and assist the growth of manufacturing capacity. It is anticipated that growth will decrease, reaching 6.6 percent in FY23/24 before reverting to its potential rate of a little above 6 percent. Of the seven largest EMDEs emerging markets and developing economies, India is predicted to have the fastest growth rate.
The World Bank in its report released in December 2022, said that the growth worldwide will decelerate in 2023. It further cautioned that the world economy is perilously close to recession. The World Bank observed that it is the first time in 80 years that the world has undergone two global recessions within a decade. The report has mentioned reasons that could further push the global recession, higher inflation, even tighter policy, financial stress, deeper weakness in major economies, or rising geopolitical tensions.
On the other hand, the report has mentioned that the global economy will grow at a slow pace of 1.7 percent in 2023. Surprisingly, the report mentioned that the Euro Area will grow at zero per cent and the United States at 0.5 per cent during the year. In 2023, it is predicted that China’s growth will accelerate to 4.3 per cent as pent-up consumer spending is liberated as a result of the easing of pandemic restrictions. Except for the pandemic year of 2020, China is anticipated to have expanded at a 2.7 percent annual rate in 2022, which would be the worst growth rate since the middle of the 1970s.
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