World Bank Report cuts global growth forecast to 2.4%

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.