is expected to grow at 7.2 per cent this financial year, up from 6.8 per cent in 2016, says a World Bank report. According to the report, though the anxiety about the festering twin-balance sheet problem persists, the economy may grow at an even higher 7.5 per cent the year after.
The World Bank has, however, revised its forecasts for growth downwards from what was projected in its January update.
On the other hand, China’s economic growth
is projected to slow at 6.5 per cent in 2017, down from 6.7 per cent the year before. But given the strong second quarter growth, China’s GDP
grew at 6.9 per cent belying expectations, overall growth for the year may well end up being higher.
The report titled - Global Economic Prospects - A fragile recovery - finds that global activity is firming up with manufacturing and trade picking up, confidence improving, and international financing conditions remaining benign.
It pegs world GDP
to grow at 2.7 percent in 2017 and 2.9 percent in 2018-19.
But with advanced economies expected to grow at only 1.9 per cent in 2017, emerging and developing economies are expected to drive global growth.
Emerging market and developing economies (EMDEs) are expected to grow at 4.1 percent in 2017 and reach an average of 4.6 percent in 2018-19.
But risks to growth remain. Prominent among them, as the report points out, are "trade protectionism, elevated economic policy uncertainty, the possibility of financial market disruptions, and, over the longer term, weaker potential growth."