As per United Nations’ “World Economic Situation and Prospects as of mid- 2017” report, India’s Gross Domestic Product (GDP) growth forecast for FY 2017 has been revised downwards to 7.3% as compared to 7.7% projection made in January 2017.
- However, GDP growth forecast for FY 2018 has been revised upwards to 7.9% as compared to 7.6% projection made in January 2017.
Highlights of “World Economic Situation and Prospects as of mid- 2017” Report:
- The report mentioned that stressed balance sheets in Indian banking sector, will restrict the restoration of investment cycle in the country.
- Sound fiscal and monetary policies as well as implementation of major domestic reforms have helped in containing the sudden impact of demonetisation.
- Even though India’s growth forecast has been revised downwards, it still remains fastest growing large developing economy.
- Overall, global economy is expected to grow by 2.7% in 2017 and 2.9% in 2018.
- Chinese economy is projected to grow at 5% in 2017 and 2018.
- Current account deficits in India, Brazil and South Africa narrowed significantly, whereas many countries including Russia have gone through remarkable corporate deleveraging.
- The report has outlined recovery in global industrial production; along with revival in global trade on account of rising import demand from East Asia.
- East and South Asian region has been identified as world’s most dynamic region which is driving global economic recovery.
- Least developed countries (LDCs) are expected to register 2% and 5.5% growth in 2017 and 2018 respectively.
“World Economic Situation and Prospects Report” is a joint product of following entities:
- United Nations Department of Economic and Social Affairs (UN/DESA)
- United Nations Conference on Trade and Development (UNCTAD)
- United Nations World Tourism Organization (UNWTO)
- Five United Nations Economic Regional Commissions – Europe, Africa, Latin America, Asia& Pacific and Western Asia