US based the World Bank has decreased its forecast for the global growth to 2.4% for the year 2016 and stated that world economy is challenging opposing forward motion.
Statement by Global Economic Prospects Report:
The report stated that the expectation of world economy to increase 2.4% in 2016 and 0.5 % point lower than the bank’s forecast in January 2016.
Chief Economist, World Bank, Kaushik Basu expressed that
- World financial crisis is following for seven years, the world economy is still struggling to remount the growth
- Economic Growth follows to weaken in advanced economies, while there is considerable performance across emerging market and developing economies
- The overall growth remains inactive
World Bank Report:
- The world economy would grow at 2.4% in 2016 and 2.8% in 2017 which are lower than the earlier forecast of 2.9% and 3.1% respectively
- Projections of India’s Growth: Fastest growing economies for next three years and it cuts the growth by 0.2% to 7.6% for 2016-17
- China’s growth projections at 7% and 6.5% for 2016 and 2017 without any changes
- Global growth lowered down and fall in commodity prices have declined the world trade
- Risks such as instability in global financial markets and fall in remittance inflows worsen the Indian Economy
- Internal risks such as slow growth in reforms such as power reforms, tax reforms and land reforms, susceptibility in corporate and banking sector.