ECONOMY TO CONTRACT 3.2% IN FY21

ECONOMY TO CONTRACT 3.2% IN FY21: WB

The Indian economy is expected to contract by 3.2% in this fiscal year as a result of the COVID-19 pandemic (the restrictions on activity), the World Bank said in its global Economic Prospects (GEP) June 2020 report 

Growth is forecast at 3.1% next year

The world economy is set to witness its deepest recession since World War II

Countries most reliant on global trade, tourism, external financing and commodity exports are likely to be hit the hardest 

In the baseline scenario, global growth is set to rebound at 4.2% in 2021, with EMDEs growing at 4.6% and advanced economies growing at 3.9%

The downside scenario is more severe – the global economy could shrink this year by as much as 8% (5% for EMDEs), followed by weak recovery at just above 1% growth next year 

India grew 4.2% in FY20: India’s growth is estimated to have slowed to 4.2% in FY 2019 -20 (year ended March 31, 2020)

World Bank: International financial institution that provides loans and grants to the governments of poorer countries for the purpose of pursuing capital projects

Global Economic Prospects is a World Bank Group flagship report that examines global economic developments and prospects, with a special focus on emerging market and developing economies

It is issued twice a year, in January and June

The January edition includes in-depth analyses of topical policy challenges while the June edition contains shorter analytical pieces.