India's economic growth is projected to reach 7.7 per cent in the Financial Year (FY) 2017 and 7.6 per cent in FY 2018 amid strong private consumption, as per the 2017 Report of United Nations World Economic Situation and Prospects (UNWESP) that was released on 18 January 2017.
As per the report, in 2016, the world economy expanded just by 2.2 per cent, which was the slowest rate of growth since the Great Recession of 2009.
However, the report forecasts World gross product to expand by 2.7 per cent in 2017 and by 2.9 per cent in 2018.
Highlights of the report
• According to the report, the moderate improvement expected for the FY 2017-18 is an indication of economic stabilization.
• Developing countries continue to be the main drivers of global growth, as they accounted for about 60 per cent of the world’s gross product growth in 2016-18.
• East and South Asia remain the world’s most dynamic regions which got benefitted from robust domestic demand and supportive macroeconomic policies.
• It projects that growth in the developed economies will slightly improve in 2017, but weak investment and policy uncertainty may continue to constrain economic activity.
• GDP growth in the least developed countries (LDCs) is projected to remain below the Sustainable Development Goals (SDGs) target of at least 7 per cent.
• The report also highlights that under the current growth trajectory, nearly 35 per cent of the population in LDCs may remain in extreme poverty by 2030.
• The report highlights some positive developments related to environmental sustainability as the level of global carbon emissions slowed down in two consecutive years.
• It depicts a high degree of uncertainty in the international policy environment and elevated foreign currency-denominated debt levels.
• The report also hints for greater international policy cooperation and coordination, particularly in the areas of trade and investment.
India's position in the report
• During the FY 2016-17, India positioned itself as one of the most dynamic emerging economies.
• India's growth is expected to reach 7.7 per cent in 2017 and 7.6 per cent in 2018.
• Investment demand is expected to pick up slightly in the country supported by monetary easing, government efforts towards infrastructure investments and public-private partnerships.
• In all, South Asia exhibited the fastest growth among all the regions, even as the global economy was trapped in slow economic growth.
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