India’s economy will pick up pace in the sluggish global economy, GDP will increase this year too, know the World Bank’s estimate
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World Bank: The entire world’s economy is under pressure at this time. However, in the meantime, India’s dominance will continue in the entire world for the next two years. According to the World Bank report, global economic growth (Global Economic GrowthAccording to ) the 5 years between 2020 and 25 are going to be the worst half of the last 3 decades. On the other hand, due to the steps taken by the Government of India to strengthen the economy, its growth will remain more than 6 percent for the next two years and it will be the fastest growing economy in the world. The World Bank has said in its report that the pace of growth of the global economy will slow down for the third consecutive year in 2024. The reason for this is high interest rates, high inflation, slowdown in trade along with slowdown in China. It says that the growth rate of the global economy will be only 2.4 percent this year. This is less than the rapid growth of 2.6 percent in 2023, 3.0 percent in 2022 and 6.2 percent in 2021. The strong growth in 2021 was due to the rapid economic revival after the 2020 pandemic.
Presumption of weakness due to war
This weak growth forecast is also at risk from global tensions arising from Israel’s war with Hamas and fighting in Ukraine. World Bank officials expressed concern that poor countries deeply in debt will not be able to make the investments needed to tackle climate change and poverty. “Growth will remain weak in the near future,” World Bank chief economist Indermeet Gill said in a statement. Due to this, many developing countries, especially poor countries, will fall into the trap. Debt levels will collapse and one in three people will have difficulty accessing food. The report said that in recent years the international economy has shown surprising strength in the face of one shock after another. The pandemic, Russia’s invasion of Ukraine, prolonged global inflation and policy rate hikes by central banks to control price rises have weighed on growth. But despite all this, the global economy has grown half a percent faster in 2023 than predicted in June. Also, the threat of global recession has reduced.
America’s growth rate is 2.5 percent
According to the World Bank, America’s growth rate will be 2.5 percent in 2023. This is 1.4 percent more than the estimate given by the multilateral institution in the middle of last year. The report says that America’s growth rate is expected to decline to 1.6 percent this year. The reason for this is that debt and expenditure have reduced due to high interest rates. The Central Bank of America has increased the policy rate (key interest rate) 11 times from March 2022 to control inflation. The growth rate of China, the world’s second largest economy after America, is estimated to be 4.5 percent this year and 4.3 percent in 2025. This is less than last year’s estimate of 5.2 percent. China’s economy has been the main engine of global growth for decades. But the situation has deteriorated somewhat in recent years. The collapse of the property market had an impact on the economy. Also, consumer sentiment has weakened due to increase in unemployment. The population there is ageing, due to which its development potential is decreasing.
China’s slow pace impacts many countries
Slow growth in China is likely to hurt developing countries like coal-producing South Africa and copper-exporting Chile. These countries supply goods to the Chinese market. According to the World Bank, the growth rate of the 20 European countries that share the euro currency will be 0.7 percent this year. This is slightly higher than the increase of 0.4 percent last year. Whereas Japan’s economic growth rate is estimated to be only 0.9 percent. This is half of 2023.
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