Global Growth Forecast Reduced Up to 2.4% World Bank Report [ Current Affairs ]
The global growth forecast reduced up to 2.4 % in 2016 by World Bank as recently released global economic prospects report and at 2.8 % in 2017 is also can be lower than its earlier forecast of 2.9 % and 3.1 % respectively, chiefly on account of a slower than predictable recovery in advanced economies.
Other Highlights of Report
- Due to mediocre growth experienced the global forecast is reduced by advanced economies, while low commodity prices, weak global trade and stilted capital flows also impacted.
- India has preserved first spot in the fastest growing major economies, ahead of China, for the next three years.
- Growth projections of India have been slightly lowered by 0.2 % to 7.6 % for 2016 - 17 and 7.7 % in 2017 - 18 due to downfall of exports.
- India has got profit from the fall in oil prices over a lessening in the import bill, but it also have spreads shrunk for 17 consecutive months as of April 2016.
- Domestic risks of India such as slow development in structural improvement agenda containing:
- Power sector reforms
- Land reforms
- Tax reforms and vulnerabilities in corporate and banking sector balance sheets could impact the economy
- Global strike and fall in product prices have contracted world trade projections.
World’s Fastest Growing Economies
- Currently Myanmar is the world’s fastest-growing economy as if the IMF’s latest World Economic Outlook with 8.6 % GDP growth.
- Political and economic improvements, which have made headlines around the world, have maintained this economic growth.
- Other higher growth companies are India, Laos and Tanzania.
- Published on: June 10, 2016