World Bank cheers for India, fastest growing economy

Projecting that India would remain the fastest growing large economy in 2016, at a percentage point higher than China’s, the World Bank has said that the Indian economy would grow at 7.8 percent in 2016. China will grow at a more modest 6.7 percent.

The report entitled Global Economic Prospects added that the world economy as a whole would grow at an estimated 2.9 percent, a modest growth from the 2.4 percent growth estimated for 2015.

However, these estimates represent a downward revision from the projections made in June 201. The downward revision of 0.1 percentage points in India’s case is less than the 0.3 percentage point adjustment in the estimate for China or the reduction of 0.4 percentage points in the reckoning of global growth.

South Asia will be the world’s fastest growing region, according to the report which projects Bangladesh to grow at 6.7 percent and Pakistan at 5.5 percent. However, the report wasn’t encouraging for some of the other BRICS economies where it projected Russia’s economy to shrink by 0.7 percent in 2016 and Brazil’ by 2.5 percent. Both these economies have been hit by the slump in global commodity prices. South Africa is expected to see its economy grow very slowly at 1.4 percent, the report stated.

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