- 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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