The 2018 Global Economics Prospect (GEP) released by the World Bank projects India's GDP growth to pick up to 7.3% in 2018-19 and to 7.5% for the next two years. The report pegs overall economic growth for 2017 at 6.7%, despite initial setbacks from demonetisation and introduction of the Goods and Services Tax (GST).
"In all likelihood, India is going to register higher growth rate than other major emerging market economies in the next decade. So, I wouldn't focus on the short-term numbers. I would look at the big picture for India and big picture is telling us that it has enormous potential," Ayhan Kose, director, Development Prospects Group, World
Bank, and the author of the report told PTI. Kose, however, gives thumbs up to the current government saying "India has an ambitious government undertaking comprehensive reforms. And we have all the reasons to expect this government to continue economic policies to create friendly environment for businesses and push its growth potential up." According to him, these reforms will, of course, bring certain policy uncertainty, "but when you look at India's growth potential and our numbers down the road 2019 and 2020, it is going to be the fastest growing large emerging market".
The Bank put the growth estimate for China's economy for 2017 at 6.8 per cent and forecast 6.4 per cent increase in 2018. In its overview the Bank said it finally saw the world economy recovering from the financial crisis that hit the world with full force in 2011.
"2018 is on track to be the first year since the financial crisis that the global economy will be operating at or near full capacity. The report forecast the global growth rate to edge up to 3.1 per cent in 2018 after a much stronger-than-expected growth of three per cent in 2017. The broad-based recovery in global growth is encouraging, but this is no time for complacency," World Bank Group President Jim Yong Kim said in a statement. "This is a great opportunity to invest in human and physical capital."