India continues to be the fastest-growing major economy in the world and its GDP growth is projected to hit 6.2 per cent in 2024, according to the ‘World Economic Situation and Prospects 2024’ report by the UN Department of Economic and Social Affairs. It said there is a robust domestic demand and strong growth in the manufacturing and services sectors.
What World Economic Situation and Prospects 2024 Says:
1) India remains the fastest-growing large economy in the world. Though growth in India is projected to reach 6.2 per cent in 2024, it is slightly lower than the 6.3 per cent estimate for 2023, amid robust domestic demand and strong growth in the manufacturing and services sectors.
2) Growth in several economies in the region will face downward pressures from tighter financial and fiscal conditions, balance-of-payments challenges, and the return of the El Niño climate phenomenon.
3) In China, the economic recovery from COVID-19-related lockdowns has been more gradual than expected amid domestic and international headwinds. The economy turned a corner during the second half of 2023, with the growth rate reaching 5.3 per cent for the year, an increase from 3.0 per cent in 2022.
4) Global inflation, after surging for two years, eased in 2023 but remained above the 2010-2019 average. Global headline inflation fell from 8.1 per cent in 2022, the highest value in almost three decades, to an estimated 5.7 per cent in 2023.
5) A further decline in global inflation to 3.9 per cent in 2024 is projected due to further moderation in international commodity prices and the weakening of demand amid monetary tightening.
6) India registered strong investment performance in 2023, driven by government infrastructure projects and multinational investments.
7) In the third quarter of 2023, the manufacturing Purchasing Managers’ Index – a leading indicator of economic activity – was in contraction territory in all of the world’s largest economies except India.
8) India is benefiting from growing interest from multinationals, which see
the country as a key alternative manufacturing base in the context of developed economies’ supply chain diversification strategies.
9) Consumer price inflation in India is expected to decelerate from 5.7 per cent in 2023 to 4.5 per cent in 2024, staying within the 2 to 6 per cent medium-term inflation target range set by the Central Bank.
10) The income shares of the top 10 per cent increased in a number of large developing countries that received substantial capital inflows, including South Africa and India.
Comments
0 comment