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What is the News?
The World Bank has released the Global Economic Prospects Report.
About the Global Economic Prospects Report:
- Global Economic Prospects is a World Bank Group flagship report. It is issued twice a year, in January and June.
- Aim: To examine global economic developments and prospects with a special focus on emerging markets and developing economies.
- The World Bank has reduced its growth forecast for India for the 2021-’22 financial year to 8.3% from 10.1% estimated in April.
- Reason: It has attributed it to the devastating second wave of the coronavirus pandemic that slowed down the economic revival in early 2021.
- Moreover, the report has said that the economic activity in India would likely follow a similar but less pronounced ‘collapse and recovery’ trend seen during the first wave.
Key Global Findings of Global Economic Prospects Report:
- The global economy is expected to expand 5.6% in 2021. This is the fastest post-recession pace in 80 years, largely due to strong rebounds from a few major economies.
- However, many emerging markets and developing economies continue to struggle due to the following reasons,
- A resurgence of COVID-19 cases,
- Lagging vaccination progress
- The withdrawal of policy support in some instances.
- Among major economies, the growth of the US is projected to reach 6.8% this year. This is due to large-scale fiscal support and the easing of pandemic restrictions.
- Among emerging markets and developing economies, China is anticipated to rebound to 8.5% this year, reflecting an increase in demand.
Source: The Hindu