World Bank Chief Economist Kaushik Basu says that by 2015, the growth rate of China would be 7.9% and that of India 7%
The World Bank had yesterday released its latest issue of Global Economic Prospects 2013, in which the economies of developing countries like
The World Bank expects that by 2015, the growth rate of
He added that the gap between the two Asian giants closes.
"We do expect
While the growth of the world economy growth is projected to inch up from 2.3% in 2012 to 2.4% in 2013, with the high-income countries remaining at the same level of growth of 1.3% in both 2012 and 2013, it is the emerging markets like
"We are expecting a recovery in
"If it comes down to 7.9%...I think not. India was growing from 2003 to 2008 at close to 9% per annum, with the last couple of years actually over 9%, and we expect that India, having taken off only about 10 years ago, to have some still to go.
"So, there is going to be a catch-up of India's growth getting closer to China's growth and, who knows, a couple of years down that road, they may be completely neck to neck," Basu said in response to a question.
Basu said the next one or three years will remain difficult as structural reforms are put in place primarily in the euro zone countries, but even elsewhere in the world.
Economic growth in South Asia dropped to an estimated 5.4% in 2012 is mainly due to a sharp slowdown in India, where GDP growth is forecast at 5.4% in the fiscal year ending March 2013
According the Global Economic Prospects 2013, released on Tuesday, economic growth in the region dropped to an estimated 5.4% in 2012 from 7.4% the previous year.
This is mainly due to a sharp slowdown in
It added that weak global demand exacerbated region specific factors, including subdued investment growth, electricity shortages, policy uncertainties, and a weak monsoon.
“Regional GDP is projected to grow by 5.7% in the 2013 calendar year, and by 6.4% and 6.7% in 2014 and 2015 respectively driven by policy reforms in India, stronger investment activity, normal agricultural production, and improvement in export demand.
According to the report, in
Bangladesh’s growth is projected to slow to 5.8% in 2012-13 (6.3% in 2011-12) and Nepal’s growth to 3.8% in 2012-13 (4.6% in 2011-12),” it said.
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