Global Economic Prospects Report

Context: India will remain the fastest-growing major economy, with a steady growth of 6.7% over the next three years, according to the Global Economic Prospects report published by the World Bank.

Key Takeaways

• The global growth will remain at 2.6% in 2024 (projected – 2.7% in 2025-26), marking steady growth in three years despite heightened geopolitical tensions and elevated interest rates.
• Inflation remains a concern, with global inflation expected to moderate at a slower pace.
• In 2024-25, nearly 60% of economies, representing more than 80% of the global population and world output, are projected to experience growth below their 2010s average.
• The growth in emerging markets and developing economies (EMDE) is forecast to moderate from 4.2% in 2023 to 4% in 2024 and 2025, so it will likely remain cautious in easing monetary policy.
• Growth in the South Asia Region is projected to slow to 6.2 per cent in 2024 from 6.6 per cent in 2023, which was primarily driven by faster growth in India.

India

• India’s growth is expected to slow down mainly due to a slowdown in investment activity.
• India’s economy grew by an estimated 8.2% in FY24, exceeding previous forecasts by nearly 2% points.
• In India, stronger-than-expected manufacturing, construction, and resilient services offset a slowdown in agriculture due to monsoons.
• India’s economy has been driven by strong domestic demand and robust service activity.

Other important reports by the World Bank:

• World Development Report, the Remittance Report, the Ease of Living Index, the Logistics Performance Index, the Universal Health Coverage, Index, The Service Trade Restriction Index, and the India Development Update.

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