For Global Economic Outlook the World Bank has Lowered Projections and urged developing countries to double down on domestic reforms.
GDP growth in South Asia slowed to an estimated 4.7% in market price terms in 2013, this weakness mainly reflected in manufacturing activity and a sharp slowing of investment growth in India. Most of the acceleration is India’s localized, supported by a gradual pickup of domestic investment and rising global demand. To improve fiscal consolidation continues, labor productivity and a credible monetary policy stance is maintained by the forecasts assume that reforms are undertaken to ease supply-side constraints (particularly in energy and infrastructure). Growth in India is projected at 5.5% in FY2014-15, accelerating to 6.3% in 2015-16 and 6.6% in 2016-17.
As the year progresses the global economy is expected to pick up speed and is projected to expand by 2.8% this year, strengthening to 3.4% and 3.5% in 2015 and 2016, respectively. Compared with less than 40% in 2013, High-income economies will contribute about half of global growth in 2015 and 2016. For developing countries, the acceleration in high-income economies will be an important impetus.
The financial health of economies has improved. With the exception of Russia and China, stock markets have done well in emerging economies, notably in India and Indonesia. A gradual tightening of fiscal policy and structural reforms are desirable to restore fiscal space depleted by the 2008 financial crisis.
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