The World Bank on Wednesday in its report said that India will, for the first time, lead major emerging economies in growth. According to the bank, the global economy is expected to grow 2.8 percent in 2015, slightly less than the forecast in January, before strengthening moderately to 3.2 percent in 2016-17.
“With an expected growth of 7.5 percent this year, India is, for the first time, leading the World Bank’s growth chart of major economies,” the Bank’s chief economist and senior vice-president Kaushik Basu, said here while releasing the World Bank’s latest Global Economic Prospects (GEP) report on Wednesday.
“China has avoided the potholes skillfully for now and is easing to a growth rate of 7.1 percent. Brazil, with its corruption scandal making news, has been less lucky, dipping into negative growth,” he said.
Here are the key 5 points from the report
1. The World Bank cut its global growth outlook for this year. It also said the Federal Reserve should hold off on a rate hike until next year to avoid worsening exchange rate volatility and crimping global growth.
2. It also lowered the growth outlook for the United States to 2.7 per cent this year, from 3.2 per cent in January, and to 2.8 perc ent next year, from a previous forecast of 3 per cent.
3. It also predicted that India would be the fastest-growing major economy for the first time this year, growing at a rate of 7.5 per cent, up from the previous forecast of 6.4 per cent.
4. The looming prospect of higher borrowing costs as developing nations adapt to a new era of low prices for oil and other key commodities were flagged as major challenges
5. These countries are now projected to grow by 4.4 per cent this year, with a likely rise to 5.2 per cent in 2016, and 5.4 per cent in 2017.
6.China’s growth is likely to moderate to a still robust 7.1 per cent this year.