World Bank keeps growth forecast for India at 7.5% |
The World Bank has retained its forecast for growth in India at 7.5% in the 2019-20 fiscal and the succeeding years, but warned that re-escalation of India-Pakistan tensions arising from “military skirmishes” such as the one in February could increase uncertainty and impact investments in the region. Continued GDP projection of 7.5% should be reason for some relief and celebration coming as it does amid ongoing efforts to fix the way India measures growth, which has come under intense scrutiny, and some distrust, after a government agency discovered serious gaps in a key government database. In its “Global Economic Prospects: Heightened Tensions, Subdued Investment” , the World Bank downgraded global growth prospects by 0.3% to 2.6% for the 2019-20 fiscal “reflecting weaker-than- expected international trade and investment at the start of the year”. This will begin improving here after and growth might touch 2.8% in 2021.India, on the other hand, will not only grow by 7.5%, but as the largest economy in South Asia, help the region post a “solid” growth. Pakistan, on the other hand, will continue the downslide and decelerate to 3.4% from 5.8% in the previous fiscal. Its economic woes have forced it to seek yet another bailout package from the International Monetary Fund, and consultations are underway on terms and conditions.
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