Contrasting to the global growth rate of 3.1%, India’s growth is projected to grow by 6.4% in 2022. According to the UN report, India is the fastest-growing major economy with higher inflationary pressures and uneven recovery of the labour market suppressing private consumption and investment.
The Global economic growth is now projected to grow by 3.1% in 2022, down from the forecast of 4% growth released in January 2022. The Global inflation rate is also projected to increase to 6.7% in 2022, more than double the rate of 2.9% between 2010 and 2020, it said.
The World Economic Situation and Prospects (WESP) report of the UN Department of Economic and Social Affairs said in its Wednesday release that the war has drastically changed the fragile economic recovery from the pandemic. It has triggered the catastrophic humanitarian crisis in Europe that led to an increase in food and commodity prices along with the global exacerbating inflationary pressures.
The outlook in South Asia has deteriorated in recent months as per the report due to the conflict in Ukraine, higher commodity prices, and possible spillover effects of monetary tightening in the United States.