Recently, the World Bank has released its June 2021 Global Economic Prospects
It has forecast India’s GDP growth to be 8.3% for the year 2021-22.
India’s economy is expected to grow at 7.5% for 2022-23 and 6.5% for 2023-24.
Key findings of the report
The world economy is expected to expand at 5.6%, the fastest post-recession growth rate in eighty years.
However, global output will still be 2% below pre-pandemic projections by year-end.
India’s recovery is being hampered by the largest outbreak of any country since the beginning of the pandemic.
The forecast for FY22 (8.3%) takes into account expected economic damage from an enormous second Covid-19 wave and localised mobility restrictions since March 2021.
For 2022-23, growth is expected to slow to 7.5% as a result of the pandemic’s effects on the financial position of households, companies and banks.
Suggestions by the report
Globally coordinated efforts are essential to accelerate vaccine distribution and debt relief, particularly for low-income countries.
Policymakers need to address the pandemic’s lasting effects.
They need to take steps to stimulate green, resilient, and inclusive growth.
