United Nations:
India remains the fastest growing large economy and is expected to register this tax year a growth of 6.3 percent, while the world economy has a “precarious moment”, according to the UN.
“India remains one of the fastest growing large economies that are powered by strong private consumption and public investments, even if the growth projections in 2025 have been reduced to 6.3 percent” of the 6.6 percent in January, said Ingo Pitterle, a senior economic officer of the Economic Affairs, Thursday.
The Central Year Update of the World Economic Situation and Prospects (WEPS) report said that the Indian economy is expected to grow a little faster next year by 6.4 percent, although it is also 0.3 percent lower than the projection in January.
“The global economy is at a precarious moment,” warned the report.
“Increased trade tensions, together with policy uncertainty, have considerably weakened global economic prospects for 2025.”
“It was a nervous time for the world economy,” said Shantanu Mukherjee, the director of the economic analysis and policy division, at the release of the wasp.
“In January of this year we expected stable or insufficient growth for two years, and since then the prospects have decreased,” he added.
Against this photo is the growth of the world’s fifth largest economy, India, in contrast to the global speed of 2.4 percent this year, and that of other major economies, according to the wasp.
The projection for China is 4.6 percent, for the US 1.6 percent, Germany (negative) -0.1 percent, Japan 0.7 percent and the European Union 1 percent.
“Resilient private consumption and strong public investments, in addition to robust export of services, will support economic growth” for India, according to the report.
With inflation and employment, the wasp saw positive trends for India.
“Inflation is expected to delay from 4.9 percent in 2024 to 4.3 percent in 2025, which will remain within the target range of the Central Bank,” said it.
“Unemployment remains largely stable in the midst of steady economic conditions,” it said, but added a note that “continuing gender differences in employment underline the need for greater inclusiveness in the participation of the workforce”.
The wasp drawn attention to the risks for the export sector of the American tariff threats.
“Although the emergence of American rates weigh on the export of merchandise, sectors can currently exempt – such as pharmaceutical products, electronics, semiconductors, energy and copper – limit economic impact, although these exemptions may not be permanent,” said it.
The International Monetary Fund last month expected the Indian economy to grow by 6.2 percent this year and 6.3 percent next year.
(Except for the headline, this story was not edited by NDTV staff and has been published from a syndicated feed.)
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