The Organisation for Economic Co-operation and Development (OECD), on 29 May 2013 scaled down India’s growth estimate to 5.3 per cent for 2013 from 5.9 per cent. The report warned that investment and growth potential could face constraints because of structural set up. However, the report stated that GDP growth is likely to rise gradually over the next two years. The report added that growth will gradually recover in 2013.
The OECD further forecasted that China’s economy would grow 7.8 per cent in 2013, lower from a previous estimate of 8.5 per cent. It also noted that China will have the highest growth rate among major nations until around 2020. However it could be then outshined by India. China is likely to surpass the United States as the world’s largest economy in the next few years as per the report, and India will overtake Japan to become the third largest.
The report predicted that India was likely to improve growth to 6.7 per cent in 2013, after having shown a decade’s low of 3.8 per cent in 2012. The global economy will grow at 3.1 per cent in 2013, and accelerate further to 4 per cent in 2014. The U.S. is likely to grow 1.9 per cent in 2013 and then accelerate to 2.8 per cent in 2014.