The Indian economy is at an interesting inflection point. With RBI Governor Raghuram Rajan announcing his plans to return to academia, the world, it seems, has become more uncertain. This could make global recovery tepid. Amid all the uncertainty and developments, the WB recently released the Global Economic Prospects. The GEP was first published around the time of India’s economic reforms in 1991 and has some interesting insights in its June 2016 report about the world economy in general and about emerging and developing economies in particular.
The first of these deals with the growth forecasts about the world economy and the emerging market economies. The world economy is forecast to grow at 2.4% in 2016 the same as the previous year. The growth primarily is driven by emerging economies with a growth forecast of 3.5% — up from an estimated 3.4% in 2015. The advanced economies, similarly, are forecast to grow by a tepid 1.7% in 2016 down from the estimated 1.8% in 2015.