World Bank Releases Global Economic Prospects
In News
What Happened
Why It Matters
Background
History & Context
What Changed
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Global Growth Trajectory: BEFORE global economic forecasts held slight optimism for mid-2020s stabilization, NOW global growth is projected to decelerate sharply to 2.3% in 2025 due to mounting trade tensions and geopolitical fragmentation.
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India's Growth Outlook: BEFORE India's GDP growth in preceding fiscal years (like FY24) surged past 7% driven by aggressive post-pandemic recovery, NOW growth is projected to moderate and stabilize at a sustainable 6.3% for FY26.
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Trade and Global Value Chains (GVCs): BEFORE Emerging Market and Developing Economies benefited from highly integrated and expanding global value chains, NOW these chains are facing friction due to trade barriers, leading to tighter trade conditions for EMDEs.
Prelims Angle
NCERT Connection
Practice Questions
Q1
Correct Statement(s)With reference to the World Bank's Global Economic Prospects report of June 2025, consider the following statements: 1. The report forecasted an acceleration in global growth for 2025 due to easing trade tensions. 2. It projected India to remain the fastest-growing major economy in the South Asian region with a 6.3% GDP growth for FY26. Which of the statements given above is/are correct?