World Bank Global Economic Prospects Report

World Bank Global Economic Prospects Report

According to the World Bank Global Economic Prospects Report, the Indian economy will contract by 9.6% in 2020-21. The Indian economy will recover by 5.4% in 2021-22. India’s economic contraction will be mainly attributed to the sharp decline in household spending and private investment.

World Bank Global Economic Prospects Report: Highlights

♦ The informal sector accounts for four-fifths of the country’s employment, is severely affected. On the other hand, the world economy will grow by 4% in 2021. Services and manufacturing are gaining momentum. According to the World Bank, India is facing its first technological decline.

♦ When GDP exceeds the quarter’s negative growth for two consecutive quarters, it is called a period of a technical recession. In India, the gross domestic product for the April to June quarter fell by 23.9%.

♦ In the July and September quarters, the GDP growth rate contracted by 7.5%. This clearly shows that India’s GDP growth has experienced negative growth for two consecutive quarters. Therefore, India is in a period of technological decline.

♦ According to data from the Indian Economic Monitoring Center, during the covid-19 pandemic, more than 500,000 salaried people lost their jobs.

♦ Several global rating agencies have already made predictions on the Indian economy. In September 2020, the exchange substantially reduced its growth expectations for India. The country’s GDP is expected to decrease by 10.5% in the 2020-21 fiscal year.

♦ Previously, it had expected a 5% contraction. The Asian Development Bank predicts that India’s economic growth will contract by 9% in 2020-21.

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