According to the report released by the United Nations Conference on Trade and Development (UNCTAD), the Indian economy is expected to grow by 6.5 per cent in 2024 as compared to 6.7 percent in 2023.
Highlights of the UNCTAD Report:
i.The report highlighted that the Indian economic growth in 2024 will largely be driven by robust public investment outlays, increasing local demand for consumer services and rising external demand for country’s business services exports which also contributed to the country’s growth in 2023 as well.
ii.The report also projected that the increasing interest of the multinationals to expand their manufacturing processes to India so as to diversify their supply chains will also prove to be beneficial for India’s exports and reducing its import bill.
Global growth projections by UNCTAD:
i.UN Conference on Trade and Development (UNCTAD) report has projected the global economy to grow at 2.6 percent in 2024 from 2.5 percent projected earlier.
ii.The report states that European countries like Germany and Italy are struggling with weak economic activity and facing industrial slowdowns and fiscal crisis, impacting their growth projections.
iii.Moreover, the growth is expected to slowdown in America while Argentina is facing severe inflation, and Brazil’s economic growth is hampered by external pressures and dependence on commodities.
iv.Meanwhile, Africa is projected to grow at 3.0 per cent in 2024, from 2.9 per cent in 2023.The continent’s largest economies – Nigeria, Egypt and South Africa are unable to perform as expected that is affecting overall prospects.
v.The South Asian countries particularly Bangladesh, Pakistan and Sri Lanka are currently under IMF programmes and are in a need of tight monetary and fiscal policies the effects of which are borne by the low- income households.
vi.The report also showed that China’s economy is projected to grow 4.9 per cent in 2024 and is facing some difficulties such as external uncertainties, a poorly performing labour market and low consumption.
Additional Information:
Apart from the projections made by the United Nations Trade and Development (UNCTAD) regarding the global economic growth,
- The International Monetary Fund (IMF) also raised India’s growth projection to 6.8 per cent from its January forecast of 6.5 per cent for the financial year 2024-25.
- The Asian Development Bank (ADB) projected India’s GDP growth forecast for the financial year (FY) 2024-25 to 7% from its previous estimate of 6.7%.
- The World Bank (WB) has projected India’s GDP growth for the financial year 2024-25 at 6.6%.
- Additionally,Morgan Stanley, an American multinational investment bank, has revised its forecast for India’s GDP growth forecast for the financial year 2024-25 to 6.8% from its previous estimate of 6.5%.
About the United Nations Conference on Trade and Development (UNCTAD):
UNCTAD is a permanent intergovernmental body established by the United Nations General Assembly in 1964. It is composed of 195 member states that form a part of the organization.
Headquarters – Geneva, Switzerland
Secretary General– Rebeca Grynspan
