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UN Projected India’s GDP Growth at 6.7% in 2024; Global Growth at 2.5% in 2024

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India remains a bright spot, economy expected to grow 6.7%According to the report World Economic Situation and Prospects as of mid-2023, of the United Nations (UN) released on May 16, 2023,  India’s economy, the largest in the South Asian region, is expected to grow by 5.8% in 2023 and 6.7% in 2024, supported by resilient domestic demand.

  • Global Economy: The report projected the world economy to grow by 2.3% in 2023 and 2.5% in 2024.
  • The report is prepared by the Global Economic Monitoring Branch in the Economic Analysis and Policy Division of the United Nations Department of Economic and Social Affairs(UN DESA).

Report over Indian Economy:

i.In India higher interest rates and weaker external demand were expected to continue to weigh on investment and exports in 2023

ii.Inflation is expected to decelerate to 5.5% in 2023 as global commodity prices moderate and slower currency depreciation reduces imported inflation.

  • The inflation of the regional average for South Asia is 11%.

iii.Unchanged Projection: The economic growth estimates for India’s in the mid-year assessment remained unchanged from the earlier projections made in the World Economic Situation and Prospects 2023, the report launched in January 2023.

  • The report of January 2023 also projected India’s GDP to moderate to 5.8% in 2023.

-UN forecasts world economic growth of 2.3% in 2023, 2.5% in 2024

Global Economy: The report projected the world economy to grow by 2.3% in 2023 (up 0.4% points from a January 2023 forecast) and 2.5% in 2024 (dropped 0.2% points from January 2023 projection). 

  • The growth rate is found to be well below the average growth rate in the two decades before the pandemic of 3.1%.
  • The U.N. forecasts are less than the International Monetary Fund, which projected the global growth to fall to 2.9% in 2023 from 3.4% in 2022 and increased slightly to 3.1% in  2024.

ii.The volume of global trade in goods and services is forecasted to grow by 2.3% in 2023, which is below the pre-pandemic trend.

iii.The least developed countries are forecast to grow by 4.1% in 2023 and 5.2% in 2024, far below the 7% growth target set in the 2030 Agenda for Sustainable Development

Other nation’s Growth Projection: The United States (US) and European Union’s economy is projected to grow at 1.1% and 0.9% respectively in 2023. China’s growth in 2023 is now forecast at 5.3%, as compared to the 4.8% or January 2023 projection.

Recent Related News:

The Asian Development Bank’s (ADB) Asian Development Outlook April 2023, has reduced India’s GDP (Gross Domestic Product) growth forecast for the Financial year 2022- 2023 (FY23) to 6.4% from 7% of its earlier projection.

About United Nations (UN)

Headquarters – New York, USA
Establishment – 1945
Secretary-General – António Guterres