News:The World Bank has reduced India’s economic growth forecast in its South Asia Economic Focus report.
Key takeaways from the report:
- The World Bank has projected India’s gross domestic product growth at 6% in the fiscal year 2020 compared with 7.5% forecast in April,2019.
- However,the bank also expects India’s growth to gradually recover to 6.9% in 2021 and 7.2% in 2022.
- The report said that India is going through a broad-based growth deceleration with a sharp decline in private consumption on the demand side and the weakening of growth in both industry and services on the supply side.
- Further, it also observed that the weakness of Indian economic activity during the first half of 2019 is largely driven by external and cyclical factors.
- The bank also said that the Non-Banking financial companies(NBFC) in India remain vulnerable to financial stress despite liquidity enhancing measures.
About World Bank:
- The World Bank was created at the 1944 Bretton Woods Conference along with the International Monetary Fund (IMF).
- The World Bank is an international financial institution that provides loans to countries of the world for capital projects.
- The World Bank Group consists of five development institutions which are (a)International Bank for Reconstruction and Development (IBRD) (b)International Development Association (IDA) (c)International Finance Corporation (IFC) (d)The Multilateral Guarantee Agency (MIGA) and (e)International Centre for the Settlement of Investment Disputes (ICSID).
- All of these world Bank groups support the twin goals of ending extreme poverty by 2030 and boosting shared prosperity of the poorest 40% of the population in all countries.