The World Bank upgraded India's growth forecast for the upcoming two financial years even as it portrayed a grim outlook for global economies.
The Washington-based agency has raised India's GDP target of FY23 and FY24 to 8.7% and 6.8% respectively. In comparison, China, the rate of growth is expected to drop to 5.1% from 8% last year.
The report says in India, the economic damage caused by the second wave has already been unwound with output effectively back to levels reached prior to the pandemic.
But the picture is not rosy all across the World Bank warns. “There is there a serious slowdown underway,” Ayhan Kose, the chief economist of the Prospects Group at the institution, said in an interview. The global economy “is basically on two different flight paths: Advanced economies are flying high; emerging-market, developing economies are somewhat flying low and lagging behind.”