World Bank Publishes Global Economic Prospects
In News
What Happened
Why It Matters
Background
History & Context
What Changed
- ▶
Global Growth Environment: BEFORE, the global economy faced severe recessionary fears due to aggressive interest rate hikes to combat high inflation. NOW, the report indicates stabilization with global growth steadying at 2.7 percent as inflation cools and central banks ease monetary policy.
- ▶
India's Growth Drivers: BEFORE, India's immediate post-pandemic recovery was heavily reliant on government-led capital expenditure. NOW, the report highlights a more broad-based expansion, specifically citing a thriving services sector and a strengthened manufacturing capacity as key engines of growth.
- ▶
EMDE Investment Outlook: BEFORE, investment growth in EMDEs was severely constrained by high borrowing costs and widespread debt distress. NOW, while still below pre-pandemic historical averages, investment is expected to show a marginal recovery as global financial conditions gradually loosen.
Prelims Angle
NCERT Connection
Practice Questions
Q1
Correct Statement(s)Which of the following statements is/are correct regarding the Global Economic Prospects report? 1. It is a flagship report published twice a year by the International Monetary Fund (IMF). 2. The January 2025 edition projected India's economic growth to be 6.7% for FY26.