Wednesday 14 January 2015

India to become fastest growing economy by 2017:World Bank Report

                     As per news reports, a World Bank report predicts that India would become the fastest growing economy in the world by 2017.

                      As per its publication Global Economic Prospects, India will edge out China in terms of real GDP, registering 7% rise against China's 6.9%. India would also grow by 6.4% in Real GDP (Aggregate growth rates calculated using constant 2010 U.S. dollars GDP weights) in 2015, as estimated by the report.

                       Even the poverty rates declined in India and China, aided by relatively high growth rates in developing economies, especially prior to the global financial crisis.

                        "In India, export growth has been robust, and investor confidence has been bolstered by the election of a reform-minded government. The current account deficit and elevated inflation—both persistent vulnerabilities—have declined considerably. Over the medium-term, growth is expected to rise steadily to 7 percent as reforms begin to yield productivity gains. This is expected to benefit other countries in the region which receive remittances from India." the World Bank report said.

                           The report mentioned that the global growth is expected to rise moderately, to 3.0 percent in 2015, and average about 3.3 percent through 2017. High-income countries are likely to see growth of 2.2 percent in 2015-17, up from 1.8 percent in 2014, on the back of gradually recovering labor markets, ebbing fiscal consolidation, and still-low financing costs. In developing countries, as the domestic headwinds that held back growth in 2014 ease and the recovery in high-income countries slowly strengthens, growth is projected to gradually accelerate, rising from 4.4 percent in 2014 to 4.8 percent in 2015 and 5.4 percent by 2017. Lower oil prices will contribute to diverging prospects for oil-exporting and -importing countries, particularly in 2015.

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