10 January, 2025
World Bank’s Global Economic Prospects (GEP) January 2025 Edition
Sun 19 Jan, 2025
Context
- The January 2025 edition of the World Bank’s Global Economic Prospects (GEP) report projects India's economy to grow at a rate of 6.7% in both FY26 and FY27.
GEP
- The Global Economic Prospects (GEP) report is a flagship publication of the World Bank Group that examines trends and projections in the global economy.
Key Findings in January 2025 Report
- Global economic growth is projected to hold steady at 2.7% in 2025-26.
- India, China, and Brazil, the three largest EMDEs, have collectively driven approximately 60% of annual global growth since the start of the century.
- Emerging Market and Developing Economies (EMDEs) now contribute about 45% of global GDP, compared to 25% at the start of the century.
- India is set to remain the fastest growing major economy with a 6.7% growth rate in FY26 and FY27.
- Growth in developing economies is also expected to hold steady at about 4% over the next two years.
- Developing economies are projected to finish the first quarter of the 21st century with the weakest long-term growth outlook since 2000.
Global Growth
- Global growth is projected to drop from 2.6% in 2023 to 2.4% in 2024.
- Developing economies are projected to grow just 3.9%.
- Low-income countries are projected to grow by 5.5%.
Regional Outlooks
- East Asia and Pacific: Growth is expected to decelerate to 4.6% in 2025 and to 4.1% in 2026.
- Europe and Central Asia: Growth is expected to moderate to 2.5% in 2025 before firming to 2.7% in 2026.
- Latin America and the Caribbean: Growth is projected to edge up to 2.5% in 2025 and to 2.6% in 2026.
- Middle East and North Africa: Growth is expected to pick up to 3.4% in 2025 and 4.1% in 2026.
- South Asia: Growth is projected to rise to 6.2% in 2025 and remain at that rate in 2026.
- Sub-Saharan Africa: Growth is expected to firm to 4.1% in 2025 and 4.3% in 2026.
World Bank
- July 1944, Bretton Woods Conference: Formation of International Monetary Fund (IMF) and the International Bank for Reconstruction and Development (IBRD).
- The IBRD later became the World Bank.
- United Nations' specialized agencies.
- Members: 189 member countries.
- India is also a member country.
Major Reports of World Bank:
- Global Economic Prospects
- Global Financial Development Report
- Poverty and Shared Prosperity
- World Development Reports Remittance Report
- Universal Health Coverage Index
Five Development Institutions of World Bank Group
- International Bank for Reconstruction and Development (IBRD)
- International Development Association (IDA)
- International Finance Corporation (IFC)
- Multilateral Guarantee Agency (MIGA)
- International Centre for the Settlement of Investment Disputes (ICSID)
India is not a member of ICSID.