Washington DC: On Tuesday, the World Bank marginally
downgraded India’s growth rate to 7.6 percent in 2016 even as it said the
country will continue to grow faster than its large emerging market peers.
In its latest ‘Global Economic Prospects’, the bank reported downgraded its 2016 global growth
forecast to 2.4 percent from the 2.9 percent pace projected in January.
India’s growth too has been downgraded marginally by
0.2 percent, while that of China remains the same and pegged the Communist
nation at 6.7 percent.
The bank also modified its projections for India’s
growth rate in 2017 and 2018 by a marginal down gradation of 0.2 percent to 7.7
percent growth in both the years.
The
bank said half a point down grade in the global growth was due to sluggish
growth in advanced economies, stubbornly low commodity prices, weak global trade
and diminishing capital flows.
“This
sluggish growth underscores why it's critically important for countries to
pursue policies that will boost economic growth and improve the lives of those
living in extreme poverty,” World Bank Group President Jim Yong Kim said in a
statement.
“Economic
growth remains the most important driver of poverty reduction, and that's why
we're very concerned that growth is slowing sharply in commodity-exporting
developing countries due to depressed commodity prices,” Jim said.
The
bank said that growth in India picked up to 7.6 percent in Fiscal Year 2015/16,
a 0.4 percentage point increase over Fiscal Year 2014/15, driven largely by
domestic demand.
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