Daily News Analysis

2021 Global Economic Prospects-World Bank

9th June, 2021 Economy

GS PAPER III: Indian Economy and issues relating to Planning, Mobilization of Resources, Growth, Development and Employment.

Context: India’s economy is expected to grow at 8.3% for Fiscal Year 2021-22 as per the World Bank’s latest projections.

Key findings of report:

  • The world economy is expected to expand 5.6% , the fastest post-recession growth rate in eighty years, but global output will still be 2% below pre-pandemic projections by year-end.
  • The growth rate forecasted for India for 2021-22, the World Bank is an upward revision from its January forecast of 5.4%.
  • Activity will benefit from policy support, including higher spending on infrastructure, rural development, and health, and a stronger-than[1]expected recovery in services and manufacturing.
  • For FY 2022-23 growth is expected to slow to 7.5% as a result of the pandemic’s lingering effects on the balance sheets of households, companies and banks and possibly low levels of consumer confidence and heightened uncertainty around job and incomes.

https://www.thehindu.com/business/Economy/india-expected-to-grow-at-83-says-world-bank/article34762989.ece?homepage=true