New Delhi, Jan 17 (GCBusiness) The United Nations projects India’s economy to grow by 5.7 per cent in the current fiscal and expects it to grow to 6.6 per cent in the next, adding that ‘it will take continued structural forms to bring back growth to its previous levels’.
According to UN’s World Economic Situation and Prospects (WESP) 2020 report released on Friday, ‘After experiencing a sharp economic slowdown from 6.8 per cent in 2018 to 5.7 per cent in 2019, India has committed to an ambitious fiscal expansion …..The combination of the fiscal stimulus and financial sector reforms, boosting investment and consumption, is expected to support a recovery in growth to 6.6 per cent, but it will take continued structural reforms to bring India’s growth back to its previous levels’.
The report said global growth rate of 2.5 per cent is possible in 2020, but a flare up of trade tensions, financial turmoil, or an escalation of geopolitical tensions could derail a recovery.
In a downside scenario, global growth would slow to just 1.8 per cent this year, it added.
Economic growth in South Asia is forecast to recover to 5.1 per cent in 2020, after falling to a decade-low of 3.3 per cent in 2019, but it will remain well below the rates seen in the recent past.
As the one-off shocks wane and governments respond with vigorous fiscal expansion, economic activity will rebound in most of the countries, the report added.