Global economic trends impacting India

India requires more public and private consumption to boost its economy. This is because the consumption sector is about 55% of the total demand of the economy.

- Kishore Kumar Biswas

Some global perspectives

The world economy is anticipating inflation and recession. The developed countries are particularly worried about it. The heads of organisations like the International Monetary Fund are categorically pointing out about continuing high price inflation and the high possibility of several economies entering into recession. To tame inflation, central banks of the world have been increasing policy rates.

On October 25, 2023 the United Nations released a report titled 'United Nations World Economic Situation and prospects 2023'. The report mentions that in 2022 the world average GDP growth rate was 3%. But it may come down to 1.9% in 2023, the lowest in several decades. The report also stated that it may go up to 2.7% in 2024 - depending on favourable conditions.

On January 16, 2023 in the annual meeting of government and non-government business heads, a survey report of the World Economic Forum was placed. The report mentions that two thirds of the government and non-government economists of the developed countries of the world believe that the world economy may enter into recession in 2023. Out of that, about 18% specialists think the possibility of recession is very high.