The World Bank has lowered India's economic growth forecast for the current financial year 2023-24 to 6.3 percent. This is 0.3 percentage points lower than the January estimate by the World Bank. The World Bank said that India is witnessing an unexpected movement in private consumption and investment. Services growth is also strong. The World Bank expressed this prediction in its new report on global economic prospects. It is said that the global growth rate will decline to 2.1 percent in 2023, from 3.1 percent in 2022.

Emerging economies are also in trouble

Growth in emerging markets and developing economies (EMDEs) excluding China is projected to slow to 2.9 percent this year from 4.1 percent last year. It shows a massive drop in growth rate. The World Bank said, “India's growth rate is expected to slow further to 6.3 percent in FY 2023-24. That is 0.3 percentage points lower than the January estimate. Newly appointed World Bank Group President Ajay Banga said, “Employment is the most effective way to reduce poverty and spread prosperity. A slow growth rate means that creating jobs will also be difficult.

Estimates may vary

With this he said that “It should be noted that growth rate projections are not 'destiny'. We have a chance to change this, but we all have to work together. Indian-origin Ajay Banga took charge as the president of the World Bank on Friday. A World Bank report attributed the slow growth rate in India to high inflation and rising debt impacting personal consumption.