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Global Economy Watch by PwC

Topics Covered:

  1. policies and analysis of their performance.
  2. Indian economy and issues related to planning.
  3. Effects of liberalization.

 

Global Economy Watch by PwC

 

What to study?

  • For Prelims: About Global Economy Watch report.
  • For Mains: Highlights of the report- significance, challenges, potential and measures needed.

 

Context: Global Economy Watch report has been released by London based multinational professional services network- PricewaterhouseCoopers (PwC).

PwC’s Global Economy Watch is a short publication that looks at the trends and issues affecting the global economy and details its latest projections for the world’s leading economies.

 

A look at India’s economy in 2019 as per the report:

  • India is likely to surpass the United Kingdom in the world’s largest economy rankings in 2019.
  • As per the report, while the UK and France have regularly switched places owing to similar levels of development and roughly equal populations, India’s climb up the rankings is likely to be permanent.
  • The report projects real GDP growth of 1.6% for the UK, 1.7% for France and 7.6% for India in 2019.
  • As per the report, India should return to a healthy growth rate of 7.6% in 2019-20, if there are no major headwinds in the global economy such as enhanced trade tensions or supply side shocks in oil.
  • The growth will be supported through further realisation of efficiency gains from the newly adopted GST and policy impetus expected in the first year of a new government.

 

Global Scenario:

  • The report notes that global economy as a whole is expected to slow in 2019 as G7 countries return to long-run average growth rates.
  • PwC expects that the pick-up in growth of most major economies seen between the end of 2016 and the beginning of 2018 is now over.
  • The report also notes that workers and wages will come to the fore and trade conflicts will deepen. The main focus of tensions is likely to remain US-China trade, but there will always be the risk of this escalating into a wider trade conflict and businesses accordingly need to plan for different scenarios.

 

Sources: the hindu.