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World Bank puts India’s GDP at 7.5%

Accommodative monetary policy

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Accommodative monetary policy

World Bank building

 

The World Bank estimates India will have a 7.5% economic growth for 2019, forecasting 7.5% each for 2020 and 2021, putting it at best than others’ 7+%.

Credit growth will benefit from relatively more accommodative monetary policy amid benign inflationary conditions, said the Bank in its report on 7 Apr 2019.

“Support from delayed fiscal consolidation will partially offset the effects of political uncertainty on economic activity around elections in May (2019)” said the Bank in a report “South Asia Economic Focus, Exports Wanted”.

To boost the Gross Domestic Product growth further, India must increase export to 30% from current 10% of the GDP.

The report offers a positive outlook based on recent months as export growth is picking up from its low levels, even outpacing imports growth in the third and fourth quarter of 2018.

“This recent acceleration of export growth, combined with a slowdown in import growth, is expected to continue in 2019 and beyond, with both rates eventually converging at an average 11 percent growth rate,” said the Bank on its perspective across the region.

But despite this recent progress, South Asian countries still export only one-third of their potential, and the gap is widening.

The report estimates that the region’s export gap widened over time, standing at over 20% of GDP in 2017, as South Asia did not fully take advantage of a favorable international global trade environment and remained on the margins of global value chains. fiinews.com

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