The World Bank, in its latest update of its Global Economic Prospects, has highlighted that economic growth for developing countries is likely to pick up, spurred by falling oil prices and despite a slight slowdown in emerging economy China. Developing countries` GDP growth is expected to increase from 4.4% in 2014 to 4.8% in 2015 and further surge to 5.3% in 2016.
Regarding the Indian economic growth, the World Bank’s report highlighted that India should be among the prime beneficiaries of the spectacular plunge in crude oil prices that has lost almost 60 percent of its value since June. The Asian giant, India, which is a net importer of crude oil, is likely to witness GDP growth at 6.4% this year from a 5.6% rate last year. On the Russian economic growth, it noted that Russia, which also is the target of western economic sanctions, is expected to suffer a 2.9% economic contraction this year before crawling back into growth in 2016.
Further, the report added that growing momentum in the developing countries would push growth in the global economy higher to a moderate 3.0% in 2015 from 2.6% in 2014, despite persistent weakness in the Euro zone and Japan. However, World Bank trimmed its global growth forecast from 3.4% projected in June. Further, it added that world GDP growth will reach 3.3 percent in 2016, as opposed to a June forecast of 3.5 percent, before dipping to 3.2 percent in 2017.