India GDP Forecast: Amidst the sound of recession abroad, World Bank changed its growth forecast, reduced GDP projection for India as well - Newztezz Online

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Wednesday, June 7, 2023

India GDP Forecast: Amidst the sound of recession abroad, World Bank changed its growth forecast, reduced GDP projection for India as well

The World Bank has reduced the global economic growth rate for the year 2023 to 2.1 percent, while the economic growth for the year 2022 was seen at 3.1 percent. This means that the global economy growth this year will be one percent less than last year.

In the recent NSO report, India's real GDP growth in the fourth quarter of FY 2023 and in the entire fiscal was seen more than expected. Since then, it is being speculated that the Reserve Bank of India may upgrade its estimates of the country's GDP for FY24 after the MPC meeting on June 8. Before the RBI's estimate is upgraded, the World Bank's estimate has put the Government of India and the RBI in a quandary. In fact, the World Bank has slightly reduced India's GDP estimate for FY 2024. Even after that the GDP of the country can be seen as the best in the world. Let us also tell you how much the World Bank has reduced India's GDP estimate and on what basis.

India's growth rate is estimated low

The World Bank has reduced India's GDP estimate in the current financial year 2024 slightly as compared to earlier. The World Bank has predicted a decline of 0.3 percent in its earlier estimate and said that India's GDP could be 6.3 percent in the current financial year. Earlier in January, the World Bank had estimated that India's GDP could be 6.6 percent. Talking about India's economy in its report, the World Bank said that there is tremendous fighting spirit in personal consumption and investment in India. Apart from this, a boom is also being seen in the services. In such a situation, looking at the global economy of the world, India's growth is not that bad.

India will remain number one

According to the report of the World Bank, the major reason for the decrease in India's economic growth forecast is the impact on private consumption due to rising inflation and costlier loans. According to the report, due to the reduction of inflation and reforms, there may be a rise in the growth rate in the financial year 2025-26. It has also been mentioned in the report that despite all these estimates, India will remain the fastest growing economy in the world.

Global Economic Growth and Limitation

In fact, the World Bank has released its fresh report on the economic prospects of the world on Tuesday. In which the economic growth of the world including India has been estimated. In which the global economic growth is seen to be more limited. The World Bank has reduced the global economic growth rate for the year 2023 to 2.1 percent, while the economic growth for the year 2022 was seen at 3.1 percent. This means that the global economy growth this year will be one percent less than last year, which is a big setback. On the other hand, if we talk about the world's second largest economy China, it is estimated to be 2.9 percent this year as compared to last year's 4.1 percent growth. Let us tell you that recently the entry of recession has been officially done in Germany and gradually it is spreading its feet all over Europe.

Estimates can be changed, but

According to Ajay Banga, Indian-origin president of the World Bank, poverty can be reduced and happiness and prosperity can be brought only through employment. It is clear that the growth rate is low, it means that there will be difficulty in generating employment. He further said that the economic growth forecast is not set in stone. It can also be changed, but for this we have to work together and try to increase it. Ajay Banga has taken over as the President of the World Bank only last week.

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