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‘India’s recovery is on a solid path’, is world’s top economic performer: UN report – United Nations News

The UN’s annual World Economic Situation and Prospects (WESP) report estimated the expansion charge of India’s gross home product (GDP) at 9 per cent final yr and forecast it to average to six.7 per cent this yr and 6.1 per cent subsequent yr however nonetheless retain the very best development charges among the many massive economies.

In 2020, the yr Covid-19 pandemic struck the world, India’s economic system had shrunk by 7.1 per cent – a damaging development charge – in accordance with the report.

China, which got here subsequent among the many massive economies, was estimated to have grown by 7.8 per cent final yr and forecast to develop by 5.2 per cent this yr and 5.5 per cent subsequent yr.

Overall, the worldwide economic system’s development was estimated to be 5.5 per cent final yr, bouncing again from a shrinkage of three.4 per cent in 2020.

The development projections are 4 per cent this yr and three.5 per cent in 2023.

The report mentioned: “India’s economic recovery is on a solid path, amid rapid vaccination progress, less stringent social restrictions and still supportive fiscal and monetary stances.”

The WESP raised India’s development estimate for final yr by 1.7 per cent and the expansion projection for this yr by 0.8 per cent from the expectations in its report a yr in the past.

It ascribed slowing down of development from 9 per cent final yr to six.7 per cent this yr to waning base results.

While “robust export growth and public investments underpin economic activity”, the WESP warned that “high oil prices and coal shortages could put the brakes on economic activity in the near term”.

“It will remain crucial to encourage private investment to support inclusive growth beyond the recovery,” it suggested.

“Inflation is expected to decelerate throughout 2022, continuing a trend observed since the second half of 2021 when relatively restrained food prices compensated for higher oil prices,” the report mentioned whereas attaching a notice of warning: “A sudden and renewed rise in food inflation, however, due to unpredictable weather, broader supply disruptions and higher agricultural prices, could undermine food security, reduce real incomes and increase hunger across the South Asia) region.”

The report estimated India’s shopper value inflation at 5.9 per cent final yr and projected to go down to five.6 per cent this yr and 5.3 per cent subsequent yr.

The WESP mentioned that it anticipated the Reserve Bank to boost rates of interest all through this yr.

In its snapshot of the world economic system, the report mentioned: “The global economic recovery is facing significant headwinds amid new waves of Covid-19 infections, persistent labour market challenges, lingering supply-chain challenges and rising inflationary pressures.”

“The momentum for growth – especially in China, the United States and the European Union – slowed considerably by the end of 2021, as the effects of monetary and fiscal stimuli began to recede and major supply-chain disruptions emerged,” in accordance with the report.

Assessing the situation within the report, Secretary-General Antonio Guterres mentioned: “In this fragile and uneven period of global recovery, the World Economic Situation and Prospects 2022 calls for better targeted and coordinated policy and financial measures at the national and international levels.”

The 46 international locations categorized because the least developed are estimated to develop by only one.4 per cent this yr, in accordance with the WESP.

“The time is now to close the inequality gaps within and among countries. If we work in solidarity – as one human family – we can make 2022 a true year of recovery for people and economies alike,” Guterres mentioned.

The WESP painted a combined image for South Asia.

“Amid sound macroeconomic policies, Bangladesh has navigated the Covid-19 pandemic relatively well” and its “GDP is projected to expand by 6 per cent in 2022”, the report mentioned.

Its “economic activity rides on export growth and the rising demand for apparel, robust remittance inflows, and accommodative fiscal and monetary policies”, it added.

Pakistan’s economic system after an economic growth of 4.5 per cent in 2021, is projected to develop by 3.9 per cent in 2022 “driven by private consumption, record-high remittances and fiscal support”, in accordance with the report.

But for Sri Lanka, the WESP projected a GDP development of two.6 per cent for this yr and mentioned that “its major challenges include food shortages, dwindling foreign reserves and sovereign debt risks”.

Among the developed international locations, the UK was projected to be the top performer with a 4.5 per cent GDP development this yr, after a 6.2 per cent estimated development final yr.

The European Union’ development was estimated at 4.7 per cent final yr and projected to be 3.9 per cent this yr.

For the United States, the report estimated the expansion at 5.5 per cent final yr and projected it to be 3.5 per cent this yr.

While the WESP used the calendar yr calculations for the report to allow comparisons between international locations, it additionally gave this development image for India on a fiscal yr foundation – 2020-2021: -(minus)10.6 per cent; 2021-22: 8.4 per cent; 2022-223: 6.5 per cent, and 2023-24: 5.9 per cent.

Disclaimer: This story is auto-aggregated by a pc program and has not been created or edited by FreshersLIVE.Publisher : IANS-Media

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