- The World Bank cut India’s growth for financial year 2020 to 5% from 6% estimated earlier, the country’s statistics office pegged growth in the current financial year at 5%, the lowest in 11 years.
- The multilateral lender expects the country’s growth to recover only slightly to 5.8% in the next fiscal year.
- The bank’s Global Economic Prospectsreport released cited a lingering weakness in credit from non-banking financial companies (NBFCs) as the main cause for the downgrade.
- This is the slowest growth forecast since the 3.1% rate recorded in financial year 2008-09.
- Global economic growth, is expected to rise to 2.5% in the current calendar year, underpinned by a gradual recovery in investment and trade from last year’s significant weakness.
- Regional growth: In comparison, Bangladesh will be ahead compared to India. Its GDP growth rate is estimated to be 7.2%, while in Pakistan it is expected to be at 3 % & Sri Lanka’s growth rates at 3.3% for FY-20.
About World Bank:
- Motto– Working for a World Free of Poverty
- Formation– July 1944
- Headquarters– Washington, D.C., U.S
- President– David Malpass
