World Bank Global Economic Prospects Report

The World Bank said in its latest Global Economic Prospects report that global growth is likely to slow to 2.1% in 2023. It lowered India’s growth outlook to 6.3% in FY2023/24 (April-March), a 0.3 percentage point downward revision from January, 2023.

• Released in June, 2023
• Released by- World Bank (flagship report)

Key Points

• Global growth is likely to slow to 2.1% in 2023, with prospects clouded by financial risks but that’s up from a 1.7% forecast issued in January, 2023.
• In emerging market and developing economies (EMDES) excluding China, growth is projected to fall to 2.9 percent in 2023, from 4.1 percent in 2022.
• Inflation remains above target in almost all inflation- targeting economies. Median headline global inflation stood at 7.2 percent year-on-year in April.
• Global trade growth is forecast to slow from 6 percent in 2022 to 1.7 percent in 2023.

India

• Growth in India is expected to slow further to 6.3 percent in FY2023/24 (April-March), a 0.3 percentage point downward revision from January
• This slowdown is attributed to private consumption being constrained by high inflation and rising borrowing costs, while government consumption is impacted by fiscal consolidation.