The World Bank, in its latest Global Economic Prospects report, has projected India's gross domestic product (GDP) growth at 8.3 percent for the ongoing financial year and at 8.7 percent for the 2022-23 fiscal in its latest Global Economic Prospects report.
This forecast is unchanged from the June 2021 outlook, when the World Bank had slashed the growth projection from the 10.1 percent predicted in April due to the devastating effects of the second wave of the COVID-19 pandemic in the country.
In the report, World Bank upgraded India's growth forecast for FY23 to 8.7 percent and & for FY24 to 6.8 percent. The upgrade reflects higher investment from the private sector and in infrastructure, and dividends from ongoing reforms, the report stated.
Following a strong rebound in 2021, the global economy is now entering a slowdown amid threats from COVID-19 variants and a rise in inflation, debt, and income inequality—all adding to the risk of a "hard landing" in developing economies. https://t.co/abYjw0bMPO #WBGEP2022 pic.twitter.com/1laWDXrLo2
— World Bank (@WorldBank) January 11, 2022
Further, according to the report, global growth is expected to decelerate significantly, from 5.5% in 2021 to 4.1% in 2022 and further down to 3.2% in 2023
The growth deceleration will likely be the result of pent-up demand dissipating, while fiscal and monetary support is unwound across the world.
The papid spread of the Omicron variant of COVID-19 also indicates the pandemic will likely continue to disrupt economic activity in the near term, according to the report.
"The recovery lost momentum in the second half of last year amid resurgences of the COVID-19 pandemic and widespread supply bottlenecks, the latter also contributing to a notable rise in global consumer price inflation," said the report.
(Edited by : Vijay Anand)
First Published: Jan 11, 2022 8:21 PM IST
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