In a slight respite to the Indian economy, World Bank in its recently released Global Economic Prospects projected a 5% growth in 2019-20 fiscal which is more likely to recover and reach up to 5.8%.
Crux of the Matter
India’s weakness lies in credit from non-banking financing sector which is slowing down the growth.
The report also highlighted that the recent stressful geopolitical situations have also contributed to tensions in the economy.
The report praised the efforts of the Indian government to eliminate subsidies on LPG.
The growth rate of the US also slowed down to 1.8% due to uncertainty. Europe‘s economy also has slipped due to weak industrial activity.
The growth rate of Bangladesh has been projected above 7%.
World Bank said the growth in South Asia is expected to pick up the pace and reach 6% by 2022.
World Bank Group Vice President for Equitable Growth, Finance and Institutions, Ceyla Pazarbasioglu said, “With the growth in emerging and developing economies likely to remain slow, policymakers should seize the opportunity to undertake structural reforms that boost broad-based growth.”.
Curiopedia
The World Bank is an international financial institution that provides loans and grants to the governments of poorer countries for the purpose of pursuing capital projects. It comprises two institutions: the International Bank for Reconstruction and Development, and the International Development Association. he World Bank’s most recent stated goal is the reduction of poverty. As of November 2018, the largest recipients of World Bank loans were India ($859 million in 2018) and China ($370 million in 2018), through loans from IBRD. More Info
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