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Global, India output set to expand in FY22: World Bank
Why is it in news?
- World Bank recently released its Global Economic Prospects (GEP) report.
Findings of the report:
- Global economic output is projected to grow by 4% in 2021 assuming widespread roll-out of a COVID-19 vaccine throughout the year.
- India is expected to grow at 5.4% in fiscal year 2021-22 and 5.2% in fiscal 2022-23 after an expected contraction of 9.6% in fiscal 2020-21.
- India’s expected contraction in the current fiscal is due to a sharp decline in household spending and private investment.
- There was severe income loss in the informal sector which accounts for four-fifths of employment.
- Those with the lowest incomes were worst hit by the downturn and would likely take the longest to regain jobs.
- Key elements to the strength of the economic recovery would be investment that embraces the changed economic environment and an ability to reduce inequality.