The World Bank in its report published on Wednesday projected that the world’s largest democracy would remain the fastest growing large economy in the world for the year 2016.
In the report named Global Economic Prospects, the global bank showed that Indian economy to grow at a good rate of 7.8% in 2016 while China’s economy to grow behind India with one point percent less with 6.7%. The global economy as whole will witness 2.9% of growth. Simultaneously, with Bangladesh is estimated to grow at a rate of 6.7% and Pakistan with 5.5%, South Asia will be the fastest growing region in the world.
Apart from India and China, the other BRICS nations mainly Russia and Brazil will experience a shrink in their economies with 0.7% and 2.5% respectively. South Africa will see a very slow growth of 1.4%.
But all these projections lay one side but the report has issued a statement which sees the global economic growth sputtering due to China’s faster-than-expected slowdown. The China slump as the global body foresees will put large markets around the world at tremendous risk. This could very well endanger the growth rate of emerging and developing economies with major high income countries will experience continuous subdue. The World Bank’s report has also warned of possible geopolitical tensions among countries due to the China slump. Also, the sudden readjustment of expectation of the future US interest rates can also pay a typical catalyst of uncertainties in developing countries.
However, the next couple of years also do not seem much bright for the world economy with the global rate of 3.1% with China will continue to have a growth rate of 6.5% while India’s economy will grow at the rate of 7.9%