WORLD ECONOMIC SITUATION AND PROSPECTS (WESP) REPORT

May 22, 2019

According to the World Economic Situation and Prospects as of mid-2019, India's economy is projected to grow at 7.1 % in the fiscal year 2020 on the back of strong domestic consumption and investment.

World Economic Situation And Prospects (WESP) as Of Mid-2019: Key Highlights

Global growth projections: Across both developed and developing countries, growth projections for 2019 have been downgraded. Following an expansion of 3.0 % in 2018, world gross product growth is now projected to moderate to 2.7 % in 2019 and 2.9 % in 2020.
India’s growth projections: India's economy is projected to grow at 7 % in the fiscal year 2019 and 7.1 % in the fiscal year 2020 on the back of strong domestic consumption and investment.
Risks:
- Risks that could trigger a prolonged growth slowdown in the world economy include a further escalation in trade disputes, a sudden deterioration in financial conditions, and the accelerating effects of climate change.
- The increase in frequency and intensity of natural disasters highlight the rising threats from climate change, particularly for the most vulnerable economies.
Recommendations:
- Tackling the current growth slowdown require a combination of monetary, fiscal and development-oriented measures.
- There is a need of more coordinated multilateral approach to global climate policy, which includes the use of carbon pricing mechanisms.