The report said GDP in the greater South Asia region grew about 5.3% in 2023 and is expected to grow 5.2% in 2024, thanks to strong expansion in India, “still fastest growing major economy in the world. world”.
A United Nations report on Friday revised India’s gross domestic product (GDP) growth forecast for calendar year 2024 to 6.2%, from a previous estimate of 6.7%.
“Growth in India is expected to reach 6.2% in 2024, slightly lower than the 6.3% estimated for 2023, amid strong domestic demand,” the report said. strong and strong growth in the manufacturing and service sectors. WESP). report.
The report said GDP in the greater South Asia region grew about 5.3% in 2023 and is expected to grow 5.2% in 2024, thanks to strong expansion in India, “still fastest growing major economy in the world”.
UN report says China’s investment outlook faces challenges related to a struggling real estate sector, despite somewhat government-led infrastructure investment compensate for the shortfall in private investment. This assessment comes at a time when India is positioning itself as an alternative investment destination to China.
“In 2022, FDI (foreign direct investment) flows into India increased by 10%, making it the third host country for newly announced projects. Another driver of domestic fixed capital formation is increased public spending on road, rail and renewable energy projects, which could have a pull-up effect on private sector investment.” , the report said.
The report points out that global goods trade and global industrial production remain exceptionally weak amid cyclical and structural headwinds, and that in the third quarter of 2023, the managers’ index Manufacturing purchases are in decline in all of the world’s largest economies, except India.
The report said slowing global demand, unresolved trade tensions between major trading partners and geopolitical conflicts are affecting trade flows in the near term. The war in Ukraine and sanctions against Russia have also shaped the structure of global trade.
“For example, the Russian Federation’s crude oil exports have shifted from the European Union to China and India, these two countries accounted for nearly 75% of the country’s crude oil exports in the first quarter,” he pointed out. of 2023”.
“Warmer-than-average temperatures are likely to increase electricity demand and could also strain local hydropower resources amid low rainfall, which could lead to limited energy distribution in the industrial activity, as has been done recently by some countries in South Asia. year,” he said.
The report highlights that climate change events will continue to harm the South Asia region in 2023. Drought increased significantly in July and August, affecting most of India, Nepal and Bangladesh , while Pakistan recorded above-average rainfall. The GDP growth forecast for 2023 has been revised up by 0.5 percentage points to 6.3%.
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