Indian economy forecasts 9.6% decline in 2020-21: World Bank
The World Bank has said in the Global Economic Prospects report that the income of those working in the unorganized sector has been badly affected by the Covid-19 epidemic. 80 percent people are employed in this area.
The World Bank said on Tuesday that the Indian economy is expected to decline by 9.6 percent in the financial year 2020-21. This reflects a decrease in expenditure and private investment at the family level. At the same time, the Indian economy is projected to grow at 5.4 percent in the next financial year 2021-22. The World Bank has said in the Global Economic Prospects report that the income of those working in the unorganized sector has been badly affected by the Covid-19 epidemic. 80 percent people are employed in this area.
Economy will improve in 2021-22
It states, “The epidemic in India affected the economy at a time when it was already declining. Production is expected to decline by 9.6 percent in the financial year 2020-21. This explains the sharp decrease in family income and private investment. “World Bank said,” India’s economic growth will improve in 2021-22 and is projected to be 5.4 percent. Given the weaknesses in the financial sector, weak investment on the comparative basis will affect the investment from the private sector. “
Fast improvement in manufacturing sector in Pakistan
According to the report, the unorganized sector accounts for 80 percent of the total employment. There was considerable loss of income during the epidemic. Looking at recent data like electricity consumption, PMI (Purchasing Manager Index) GST collections indicate that revival is taking place at a rapid pace in the services and manufacturing sector. Talking about Pakistan, World Bank said that the improvement will be mild and the growth rate is expected to be 0.5 percent in 2020-21. Given the pressure on continued fiscal consolidation and weaknesses in the services sector, growth is expected to be impacted.
Impact of Covid-19 was less in these countries In other countries of South Asia, the effects of Covid-19 have been relatively small, but even after that they have been greatly affected. Economies that were largely dependent on tourism and travel have been adversely affected. It includes Maldives, Nepal and Sri Lanka. According to the report, the growth rate in South Asia is estimated to be 3.3 percent. The World Bank has forecast a four percent growth in the global economy in 2021. In many countries of the world, this estimate, given the approval of Covid-19 vaccine, is less than the trend of 5 percent growth before the epidemic. At the same time, the report estimates 3.8 percent growth in the global economy in 2022. Accordingly, the world economy has been projected to decline by 4.3 percent in 2020.
