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World Bank cuts global growth forecast for 2019 to 2.6% and it retains India’s FY19 growth forecast at 7.5%

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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.

India - World Bank sign $125 million agreement for “Innovate in India for Inclusiveness Project”Key points:

  • 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.
Key points:
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:
♦ FoundersJohn Maynard Keynes, Harry Dexter White
♦ HeadquartersWashington, D.C., United States
♦ President of the World Bank : David Malpass