The World Bank has estimated that the Indian economy will shrink by 9.6 percent in the current 2020-21 financial year. The decline in the economy reflects a growing decline in household spending and private investment. This estimate has been made in the World Bank’s Global Economic Report. The World Bank has said that India’s economy is expected to shrink by 9.6 per cent in 2020-21.
However, the good news is that the Indian economy will bounce back in FY 2021-2022. The World Bank report states that the income of those working in the unorganized sector has been badly affected, in which approximately 80 percent of people are employed.
According to estimates, there will be a rapid recovery in services and manufacturing. On the other hand, talking about Pakistan, the World Bank says that Pakistan’s economy will remain sluggish and will grow around 0.5 percent in the financial year 2020-2021.
The report said that the impact of the corona epidemic in South Asia has diminished, but in countries where tourism is the main source of income or employment, such as the Maldives, Nepal, Sri Lanka, etc., the economy will suffer huge losses due to the corona.
Corona has plunged the economy of the entire South Asian region into recession. Even Bangladesh, which was a fast-growing market before the Corona epidemic, also saw a decline of 2 percent in the year 2019-20 in the economy. According to the report, the growth rate in South Asia is only 3.3 percent. The World Bank has forecast four percent growth in the world economy in 2021.