The latest announcement from the World Bank must bring cheers to
the government since it has said that the Indian economy has recovered from the
effects of demonetization and Goods and Service Tax, predicting a growth rate
of 7.3 percent in 2018.
Demonetization and GST have always been the major slings aimed
at the government consistently harping on the point that these two will not do
good to the country but only subject the people and the trade to unnecessary
adverse situations. Sharp voices of criticism are still heard in some dailies.
The apex international
financial institution forecasted a rate of growth of 7.5 percent for 2019 and
The World Bank in its twice-a-year South Asia Economic Focus
report said that the growth is expected to accelerate from 6.7 percent in 2017
to 7.3 percent in 2018, and will subsequently stabilise, supported by a
sustained recovery in private investment and private consumption.
The report also noted that India should strive to accelerate
investments and exports to take advantage of the recovery in global growth.
Meanwhile, the bank also acknowledged that disruptions from
demonetisation and the implementation of GST led to a setback in the economic
activity, and a potentially larger negative effect on the poor and vulnerable.
Meanwhile, China's industrial output grew 6.0 per cent in March
from a year earlier, missing expectations, while fixed-asset investment growth
slowed to 7.5 per cent in the first quarter, also below forecasts, data showed
Investment growth had also been expected to ease, to 7.6 per
cent in the first three months of the year, from 7.9 per cent in
Private-sector fixed-asset investment rose 8.9 per cent in
January-March, compared with an increase of 8.1 per cent in the first two
months, the National Bureau of Statistics said on Tuesday.
Private investment accounts for about 60 per cent of overall
investment in China.
Retail sales rose 10.1 per cent in March from a
year earlier, beating expectations of an increase of 9.9 per cent, compared
with a rise of 9.7 per cent in the first two months.