The report notes that, Global economic growth will decrease sharply to 4.1% in 2022 and 3.2% in 2023, from 5.5% in 2021.
It projects India’s annual growth to be 8.3% in the fiscal year 2021-2022, 8.7% in 2022-23, while 6.8% in 2023-24.
It also flagged the risks posed by rising inflation and growing inequality.
It noted that, after having recovered in 2021, global economy is headed towards “pronounced slowdown”, because of new Covid-19 variants, increasing inflation, debt& income inequality, reducing fiscal & monetary support and decreasing demand.
In the outlook for South Asia, India stands at a relatively bright spot. World Bank’s projection of 8.3% in India in 2021-22 is unchanged from its June 2021 report. However, forecast for 2022-23 and 2023-24 has been changed to 8.7% and 6.8%, respectively. It reflects higher investment from private sector and in infrastructure.
As per advance estimates from statistics office, India’s economy is likely to grow by 9.2% in the financial year 2021-22.
