Global Economic Prospects Report UPSC: World Bank
Source : World Bank Report
GS II : Important International institutions, agencies and fora- their structure, mandate
GS III : Indian Economy
Why in News ?
India’s economy is expected to grow at 8.3% for Fiscal Year 2021-22 as per the World Bank’s latest projections.
- This was said in Global Economic Prospects : World Bank
Key Facts
- The World Bank has slashed India’s GDP forecast to 8.3 per cent for FY22, the fiscal year starting April 2021, as against its earlier estimate of 10.1 per cent.
- India’s growth to be 7.5 per cent in 2022, even as its recovery is being hampered by an unprecedented second wave of the Covid-19.
- In 2023, India is expected to grow at 6.5 per cent.
- Activity will benefit from Policy support including
- Higher spending on infrastructure
- Rural development and health
- Recovery in services and manufacturing
- Revised medium-term fiscal path
- Measures from RBI
- Liquidity provision to MSME
- Loosened regulatory requirements on the provisioning for non-performing loans.
- Global Economy
- The global economy is set to expand 5.6 percent in 2021.
- The global outlook remains subject to significant downside risks, including the possibility of additional COVID-19 waves and financial stress amid high EMDE debt levels.
- Policy makers will need to balance the need to support the recovery while safeguarding price stability and fiscal sustainability.
World Bank
- The World Bank Group is one of the world’s largest sources of funding and knowledge for developing countries.
- It has 189 member countries.
- India is also a member country.
- Key Focus of the Group
- By reducing the share of the global population that lives in extreme poverty to 3 percent by 2030.
- By increasing the incomes of the poorest 40 percent of people in every country.
- It has Five institutions
- The International Bank for Reconstruction and Development
- The International Development Association
- The International Finance Corporation
- The Multilateral Investment Guarantee Agency
- The International Centre for Settlement of Investment Disputes
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