World Bank’s Global Economic Prospects Report

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Context: World Bank released its Global Economic Prospect.

Prelims: Current events of national and international importance.
Mains: GS III-

  • Indian Economy and issues relating to planning, mobilization of resources, growth, development, and employment. Inclusive growth and issues arising from it.

More about the News:

  • The World Bank lowered its growth estimate for India to 5 percent for the current fiscal from the earlier projection of 6 percent.
  • It has forecasted global economic growth at 2.5 percent in 2020.

Key Points on Global Economic Prospects:

  • Global growth is set to rise by 2.5% this year from 2.4% in 2019 as trade and investment gradually recover.
  • The report also estimates growth to rise to 5.5% for the South Asian region as a whole in 2020 on the assumption of a modest rebound in domestic demand and improved business confidence.
  • The growth among advanced economies as a group is anticipated to slip to 1.4% in 2020 due to continued slowdown in the manufacturing sector.
  • The growth in emerging markets and developing economies is expected to accelerate to 4.1%.

Case of India:

  • In India, Weakness in credit from non-bank financial companies is expected to linger, growth is projected to slow to 5% in FY 2019/20, which ends March 31 and recover to 5.8% the following fiscal year.
  • Investment and trade in the country is expected to recover. However, the downward risks from 2019 are to continue.
  • It also said that the advanced economies are to slip their growth by 1.4% as the manufacturing sector continues to soften.

South Asia outlook:

  • Growth in the region is expected to rise to 5.5% in 2020, assuming a modest rebound in domestic demand and as economic activity benefits from policy accommodation in India and Sri Lanka and improved business confidence and support from infrastructure investments in Afghanistan, Bangladesh, and Pakistan.
About the Global Economic Prospects report :
  • It is published by World Bank
  • The report examines global economic developments and prospects, with a special focus on emerging market and developing economies.
  • It is issued twice a year, in January and June.
  • The January edition includes in-depth analyses of topical policy challenges while the June edition contains shorter analytical pieces.
  • Other reports released by World Bank:
    • Ease of Doing Business Report
    • Human Capital Index
    • World Development Report
World Bank:
  • World Bank is one of five institutions created at Breton Woods Conference in 1944.
  • The World Bank is an international financial institution that provides loans to developing countries for capital programs.
  • It comprises of two institutions:
    • International Bank for Reconstruction and Development (IBRD)
    • International Development Association (IDA).
  • Formation:
    • July 1944.
  • Headquarters:
    • Washington DC, United States.
  • Motto:
    • Working for a World Free of Poverty.
  • Membership:
    • 189 countries (IBRD), 173 countries (IDA)
  • The World Bank is one of the five components of the World Bank Group, which is part of the United Nations system.:
    • World Bank Group also includes three more subsidiary organisations viz.
    • International Finance Corporation (IFC),
    • Multilateral Investment Guarantee Agency (MIGA), and
    • International Centre for Settlement of Investment Disputes (ICSID)

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