World Bank watches India growing by 8.3%

#GS3 #WORLD BANK #REPORTS #SUMMARY

Context:

India’s economy is expected to grow by 8.3% in the fiscal year which was took into calculation April 2021, the World Bank forecast in its June 2021 Global Economic Prospects

Background:

Global Economic Prospects (GEP)

  • GEP of World Bank Group flagship report that examines global economic developments and prospects, with a special specialize in emerging market and developing economies.
  • It is issued twice a year, in January and June.
  • The January edition includes in-depth analyses of topical policy challenges while the June edition contains shorter analytical pieces.

Summary of the report:

Economic activity in FY22 will have the benefit of policy support, including higher spending on infrastructure, rural development, and health, and a stronger-than-expected recovery in services and manufacturing.

The World Bank on Tuesday slashed its FY22 growth forecast for India to 8.3% from the ten .1% pace it estimated in April, as an economic rebound within the early a part of this year collapsed amid a devastating resurgence of coronavirus infections in Asia’s third-largest economy.

Update: World Bank projects global economy to shrink by 5.2 pct in 2020 -  Xinhua | English.news.cn
“In India, a huge second covid-19 wave is undermining the sharper-than-expected rebound in activity seen during the last half of FY2020/21, especially in services. With surging covid-19 cases, pedestrian traffic around work and retail spaces has again slowed to quite one-third below pre-pandemic levels since March, partially thanks to greater restrictions on mobility," International Bank for Reconstruction and Development said in its latest Global Economic Prospects report.

Conclusion:

  • In India, the FY22 budget marked a big policy shift toward higher expenditure targeted at healthcare and infrastructure to spice up the post-pandemic recovery
  • While there are good signs of global recovery, the pandemic continues to inflict poverty and inequality on people in developing countries
  • Globally coordinated efforts are essential to accelerate vaccine distribution and debt relief, particularly for low-income countries above are the suggestions given for the recovery.

 

 

SOURCE: THE HINDU 

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