The World Bank report projects India's GDP to grow at 7.3% by 2018-19
Source :NewsBharati Date :09-Jan-2019
New Delhi, January 9: After the Central Statistics Office’s report commenting positive about India’s GDP growth estimates, it is the World Bank’ report projecting India to be the fastest growing economy in the world by 2018-19. In a report that was released yesterday, the world bank asserted that India’s GDP will grow at 7.3% during the on going financial year.
In comparison, according to the report, China is expected to register a much lower growth rate of 6.3%. These predictions have been made in a report prepared by the World Bank titled ‘Global Economic Prospects darkening skies’. The report says that most of the economies in the world stare at dark times in this financisl year. However, it has projected brighter picture for India and South Asian region for whole.
On the Narendra Modi Government’s decision to implement the Goods and Services Tax, the World Bank report said that it’s introduction and steps towards demonetisation are expected to encourage a shift from the informal to the formal sector. The report further said that India’s growth will further climb up to 7.5% in the next two financial years. However it warned that rising interest rates and currency volatility are weighing on the activity.
“On the domestic front, vulnerabilities are being exacerbated by fiscal slippages and rising inflation, and there is a risk of delays in structural reforms to address balance sheet issues in the banking and non-financial corporate sectors. Key external risks include a further deterioration in current accounts and a faster-than expected global financial tightening.”, asserted the report.
Focussing over the advanced economies, the report continued to say, “Growth decelerated in almost 80 per cent of advanced economies and in nearly half of emerging market and developing economies in 2018. This year, it is expected to slow further in a majority of advanced economies and in about a third of emerging market and developing economies.”, said the report.
Besides, the World Bank talking in relation to the slowdown in two largest economies urged to say that the fiscal measures undertaken in the United States and China are supporting their near-term growth prospects; however, they could exacerbate imbalances and amplify risks of a more abrupt downturn later on. A sharper-than-expected and simultaneous slowdown in these two economies could have severe consequences for the global economy.
“The simultaneous occurrence of a severe downturn in the United States and a sharper-than-expected deceleration in China, although still unlikely in the near term, would substantially increase the risk of an abrupt global slowdown. These two economies are, together with the Euro Area, the most important source of global spill overs, and can impact the outlook for EMDEs through trade, confidence, financial-market, and commodity market channels”, it added further.