2021 Global Economic Prospects-World Bank
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-thanexpected 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.