As per World Bank’s latest edition of the report titled ‘Global Economic Prospects – A fragile recovery’, India is the fourth fastest growing economy in the world behind Estonia, Uzbekistan and Nepal.
World Bank’s Outlook on Prospects of Indian Economy:
World Bank analysts have mentioned that recent data on Indian economy indicates acceleration in growth, with an easing of cash shortages and a rise in exports.
- An increase in government spending, including on capital formation, has partially offset soft private investment.
- For FY 2017-18, Indian economy is expected to grow at 7.2%. For following fiscal year it will grow at 7.5%
- It pegs world GDP to grow at 2.7 percent in 2017 and 2.9 percent in 2018-19. Emerging market and developing economies (EMDEs) are expected to grow at 4.1 percent in 2017 and reach an average of 4.6 percent in 2018-19.
World Bank’s Outlook on Prospects of Chinese Economy:
As per World Bank, Chinese economy is showing clear sign of slowdown and ranks at number 16 in terms of Gross Domestic Product (GDP) growth rate.
- Chinese economy is anticipated to slow to 6.5% this year and 6.3% in 2018.
- Though China has shown recovery in exports and the robust consumption pattern is
intact, analysts have expressed concern about exacerbating financial vulnerabilities of China on account of elevated domestic debt. - World Bank has outlined that the policy uncertainty in the United States and Europe is likely to impact Chinese growth rate more adversely.
- The exit of the United Kingdom from the European Union carries financial risks that could weigh heavily on the China’s growth prospects.
intact, analysts have expressed concern about exacerbating financial vulnerabilities of China on account of elevated domestic debt.Quick facts about World Bank:
World Bank is an international financial institution that provides loans to its member countries for developmental projects.
- It was formed in year 1945.
- World Bank comprises two institutions: the International Bank for Reconstruction and Development (IBRD), and the International Development Association (IDA).
- Headquarters of World Bank is located in Washington D.C., US.
- Jim Yong Kim is the current President of World Bank.
