On January 5, 2024, According to the United Nations Department of Economic & Social Affairs (UN-DESA) released World Economic Situation and Prospects (WESP) 2024 report projecting India’s economic growth to reach 6.2% in 2024 which is slightly lower than the 6.3% estimate for 2023.
- India’s GDP is estimated to reach 6.6% in 2025.
- South Asia’s Gross Domestic Product (GDP) is expected to increase by 5.2% in 2024. It grew by an estimated 5.3% in 2023.
Note:
The report is produced by UN-DESA in partnership with the United Nations
Conference on Trade and Development (UNCTAD) and the five United Nations regional commissions: the Economic Commission for Africa (ECA), Economic Commission for Europe (UNECE), Economic Commission for Latin America and the Caribbean (ECLAC), Economic and Social Commission for Asia and the Pacific (ESCAP) and Economic and Social Commission for Western Asia (ESCWA).
Key Points:
i.The Indian economy growth is supported by resilient private consumption and substantial public investment, with manufacturing and services sectors playing crucial roles.
ii.Despite concerns about erratic rainfall impacting agricultural output, the report highlights India’s consistent efforts outperformed its peers.
- The Central Government also managed to maintain fiscal support despite inflation.
Global Scenario:
i.It forecasts a slowdown in global economic growth from 2.7% in 2023 to 2.4% in 2024 with short-term risks and structural vulnerabilities.
- This is below the pre-pandemic growth rate of 3.0%.
ii.Global headline inflation fell from 8.1% in 2022 to an estimated 5.7% in 2023 and is projected to decline to 3.9% in 2024.
iii.Global trade growth weakening to 0.6% in 2023 and expected to recover to 2.4% in 2024.
iv.The 2024 WESP report urges immediate action to tackle various challenges, stressing enhanced global cooperation in climate action, sustainable development financing, and addressing the debt sustainability issues of low- and middle-income countries.
v.It underscores the crucial role of multilateralism in navigating the complex global economic landscape and achieving the Sustainable Development Goals (SDGs).
Recent Related News:
i.The World Intellectual Property Organization (WIPO), an agency of the United Nations, published the 16th edition of the Global Innovation Index (2023). India retains 40th rank among 132 economies. While Switzerland secured the top spot in the rankings, with Sweden and the United States of America (USA) following closely.
ii.The United Nations Food and Agriculture Organization (FAO) released a report titled ‘The Impact of Disasters on Agriculture and Food Security 2023-Avoiding and reducing losses through investment in resilience‘ which is the first–ever global estimation of the impact of disasters on agricultural production focused on crops and livestock.
About United Nations Department of Economic & Social Affairs (UN-DESA):
Under-Secretary-General for Economic and Social Affairs– Li Junhua
Headquarters– New York, United States
Establishment– 1948
