The World Bank has released its Global Economic Prospects report, 2019.The report has forecasted that the World economy will expand 2.6% in 2019 compared with a projection of 2.9% it made in January, 2019.
The growth was downgraded due to (a)trade conflicts (b)financial strains (c)unexpectedly sharp slowdowns in wealthier countries and (d)build-up of government debt.
The report has warned that the world’s poorest countries will face the most daunting challenges due to entrenched poverty, fragility and geographic isolation.
Further,the World Bank has projected that India will grow at 7.5% in the next three years supported by robust investment and private consumption.
The report said that Private consumption and investment will benefit from strengthening credit growth amid more accommodative monetary policy with inflation having fallen below the Reserve Bank of India’s target.
The World Bank has said that India will continue to retain the position of being the fastest growing emerging economy.And by 2021,its growth rate is projected to be 1.5% more than China’s 6%.
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