India has recovered from demo, GST; 7.3% growth predicted

Marco Green
April 17, 2018

The World Bank has said that India needs 8.1 million jobs every year to maintain its employment rate.

Looking ahead, return to business as usual and subsequent rebalancing of growth drivers towards investment could support acceleration of GDP growth to 7.4 per cent by FY 2019, it said.

Noting that the one-time policy events disruptions from demonetisation and uncertainty surrounding GST slowed India's economic momentum in FY2016, the International Monetary Fund said real GDP growth slowed to 7.1 per cent in FY2016, from 8 per cent in FY15/16, and further to 5.7 per cent in Q1 FY2017. SAEF finds that the South Asia region could even extend its lead over East Asia and the Pacific.

A project agreement was also signed by P. Sampath Kumar, Commissioner and Secretary to the Government of Meghalaya and CEO, Meghalaya Basin Development Authority (MBDA) and Hisham A Abdo Kahin, Acting Country Director, World Bank (India).

The report projects the growth to rebound in 2018 from a low base and continue to be around 4.5 percent in the medium term, driven by private consumption and investment.

The World Bank said on Monday that apart from the risk of overheating, the Philippine economy is also facing other domestic risks such as higher inflation and fiscal deficit. Despite accelerating global growth and trade, exports remain weak.

"Policies and actions are needed to make growth more labour-intensive, and especially to create the kinds of jobs that can encourage greater labour force participation by women", said report author Robert Beyer. The institution further said that the employment rate is declining as women are leaving the job market.

"More than 1.8 million young people will reach working age every month in South Asia through 2025 and the good news is that economic growth is creating jobs in the region", said Martin Rama, World Bank South Asia region chief economist.

Other reports by Click Lancashire

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