India will be a bright spot in an otherwise mediocre global economy with 7% growth by 2016, says World Bank Report
Islamabad: India will be a bright spot in an otherwise mediocre global economy with 7% growth by 2016, says World Bank Report.
World bank report indicates that constant drop in oil prices will ensure success to oil importing countries like China, India, Brazil, Turkey, Indonesia and South Africa and these countries can show amazing results during the forthcoming years. However, report suggests that countries wish to get benefit from dipping oil prices should take steps for fiscal and structural reforms for ensuring constant economical boost, long-run growth and inclusive development.
Report expects 7 growth to Indian economy by 2016.
“Emerging markets can use sagging energy prices to their advantage to build up financial reserves. Inflation, or the price of goods, is likely to remain low, delaying wealthy countries from raising interest rates, which bumps up the cost of borrowing. In Brazil, Indonesia, South Africa and Turkey, the fall in oil prices will help lower inflation and reduce current account deficits, a major source of vulnerability for many of these countries,” the report says.
It may be mentioned that the World Bank publishes its Global Economic Prospects twice a year, once in June and again in January. Overall, global economic growth is slated to increase by 3 percent, up from June’s 2.6 percent.
