World Bank Global Economic Prospects 2025
In News
What Happened
Why It Matters
Background
History & Context
What Changed
- ▶
Global Growth Trajectory: BEFORE, global growth experienced sharp volatility due to pandemic recoveries and supply chain shocks. NOW, the global economy is settling into a stagnant, low-growth baseline of 2.7 percent for both 2025 and 2026.
- ▶
India's Growth Drivers: BEFORE, India's post-pandemic growth relied heavily on aggressive government capital expenditure. NOW, growth is increasingly supported by rebounding private consumption, a stronger labor market, and revitalized manufacturing due to logistics and tax reforms.
- ▶
Economic Share of Developing Nations: BEFORE, Emerging Market and Developing Economies (EMDEs) accounted for about 25 percent of global GDP at the start of the century. NOW, they contribute approximately 45 percent of global GDP and drive nearly 60 percent of annual global economic growth.
Prelims Angle
NCERT Connection
Practice Questions
Q1
With Reference ToWith reference to the World Bank's Global Economic Prospects (January 2025) report, consider the following statements: 1. Global economic growth is projected to accelerate to over 4.0 percent in 2025 due to rapid recovery in advanced economies. 2. India is projected to maintain a growth rate of 6.7 percent for FY26 and FY27. Which of the statements given above is/are correct?