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World Bank Growth Estimate: The World Bank has reduced its estimate of India’s economic growth rate (GDP) to 6.3 percent for the current financial year 2023-24. This is 0.3 percentage points less than the previous estimate made by the World Bank in January. Along with this, the World Bank said that India is witnessing unprecedented belligerence in private consumption and investment. At the same time, the growth of services is also strong. At the same time, after the decline in the second half of 2022, the situation in the manufacturing sector is improving in 2023. The World Bank said, “The growth rate in India is expected to slow further to 6.3 per cent in the financial year 2023-24. This is 0.3 percentage points less than the January estimate.”
The World Bank also made this estimate for the global economy.
The World Bank has expressed this estimate in its latest report on Global Economic Prospects. It has been said that the global growth rate will come down to 2.1 percent in 2023, which was 3.1 percent in 2022. The growth rate in emerging markets and developing economies (EMDEs) other than China is estimated to slow down to 2.9 per cent this year from 4.1 per cent last year. This shows a massive decline in the growth rate.
What did World Bank President Ajay Banga say
Newly appointed World Bank Group President Ajay Banga said, “Employment is the surest way to reduce poverty and spread prosperity. Slowing growth means job creation will also be difficult.” Along with this, he said, ‘It is important to note that growth rate estimates are not ‘destiny’. We have the opportunity to change this, but for this we all need to work together.
Why will India’s GDP growth slow – World Bank explains the reason
Banga of Indian origin took over as the President of the World Bank on Friday itself. The World Bank report states that the reason for the slow growth rate in India is due to high inflation rate and rising cost of debt affecting private consumption.
India will remain the world’s fastest growing economy
According to the report, “Growth is expected to pick up somewhat in FY2025-26 on account of inflation coming down to the mid-point of a tolerable range and reforms. Among the emerging major developing economies (EMDEs), India in both overall and per capita GDP.. will remain the fastest growing economy in the world.” The World Bank has said that growth in India at the beginning of 2023 will be lower than the level achieved in the pre-pandemic decade. This is because private investment was affected by high prices and rising cost of debt.
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