India leads World Bank's growth chart of major economies

11 Jun '15

4 min read

“Unless emerging markets have taken the prudent policy steps to be fiscally and externally resilient, they may face significant challenges dealing with the turbulence and other fallout that could be associated with a Fed tightening,” said Ayhan Kose, the World Bank’s director of Development Prospects.

A special analysis in the report finds that low-income countries, many of which depend on commodity exports and investment, are vulnerable in the current environment. In high-income countries, in contrast, recovery is gaining momentum, as growth in the Euro Area and Japan picks up and the United States continues to expand, despite a weak start to the year.

High-income countries are on course to grow by 2.0 per cent this year, 2.4 per cent in 2016 and 2.2 per cent in 2017. The global economy is likely to expand by 2.8 per cent this year, 3.3 per cent in 2016 and 3.2 per cent in 2017. Using 2010 purchasing power parity weights, global growth would be 3.4 per cent in 2015, and 4.0 per cent for each of 2016 and 2017.

The report also warns that an excessive appreciation of the US dollar could curtail the recovery in the world’s largest economy, with adverse side-effects for US trading partners around the world. (RKS)

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