Indian market gain on Wednesday, World Bank estimates 2017 global growth to rise 2.7 per cent
The top gainers on the BSE Sensex included Coal India, Tata Steel, Lupin, ICICI Bank and SBI while Bajaj Auto, ITC, Reliance, Wipro and Infosys were the losers.
The World Bank (WB) in its report titled Global Economic Prospects -- Weak Investments in Uncertain Times said that stagnant global trade, subdued investment, and heightened policy uncertainty marked another difficult year for the world economy.
In its report, the WB pointed out that a moderate recovery is expected for 2017, with receding obstacles to activity in commodity-exporting emerging markets and developing economies.
But it also said that weak investment is weighing on medium-term prospects across many emerging markets and developing economies.
In its report, the WB warned that although fiscal stimulus in major economies, if implemented, may boost global growth above expectations, risks to growth forecasts remain tilted to the downside. Important downside risks stem from heightened policy uncertainty in major economies.
According to the report, global growth in 2016 is estimated at a post-crisis low of 2.3 percent and is projected to rise to 2.7 percent in 2017.
In its Global Outlook Summary: January 2017 Forecasts, the WB has said that global growth for 2017 is projected at 2.7 percent, 0.1 percentage point lower than the June 2016 forecast, and 0.4 percentage points higher than the estimate for 2016. Going forward, global growth is projected to pick up modestly, reaching 2.9 percent by 2018.
The World Bank on Wednesday downgraded India's growth estimate for 2016-17 due to demonetisation but said that the country will post a "still robust" growth of 7 per cent.
In its first report after demonetisation of Rs. 500 and Rs. 1,000 denomination currency notes in November, the multilateral lender also said the notes ban move could "continue to disrupt business and household economic activities". It had earlier estimated India's GDP or gross domestic product growth at 7.6 per cent, reported NDTV.
"The 'Make in India' campaign may support India's manufacturing sector, backed by domestic demand and further regulatory reforms," NDTV quoted World Bank as saying.
Image: Wikimedia Commons
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