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.
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.