Global growth forecast
On June 5, 2019, World Bank in its semiannual report “Global Economic Prospect (GEP)” slashed global forecast for 2019 to 2.6% as compared to 2.9% in January this year.
- The report stated that Growth slowdown was because of deceleration in investments due to trade tensions between US and China.
- IMF (International Monetary Fund) notified that the trade tensions between Washington and Beijing decreased the global GDP by 0.3%.
India’s growth forecast
On June 5, 2019, World Bank in its report “Global Economic Prospects report” retained India’s growth forecast at 7.5% for the next two Fiscal years, FY2019 and FY20 (April 1, 2019 to March 31, 2020) as it also cuts the global economic expansion by 0.3%.
The report stated that private consumption and investment will get benefitted amid the reliable monetary policy with inflation having fallen below the Reserve Bank of India’s target.
Growth projections for India made by different organizations varied by some point of scale.
- UN (United Nations) downgraded India’s growth rate for the current fiscal year to 7 percent a cut of 0.6 percent and reduced the forecast for the next fiscal year by 7.1 per cent.
- IMF (International Monetary Fund) cut India’s growth projections for this year to 7.3 percent.
- The Asian Development Bank (ADB) projected India’s growth rate would be 7.2 per cent this year and 7.3 per cent next year.
About World Bank:
♦ Founders: John Maynard Keynes, Harry Dexter White
♦ Headquarters: Washington, D.C., United States
♦ President of the World Bank : David Malpass