World Bank Group (WBG) President David Malpass said Tuesday that amid the global economic slowdown expected this year, China and India stand out as “exceptions.”
“I will point to two exceptions to the slowdown – China and India. China’s GDP growth is rebounding above 5 percent in 2023, with strong private investment,” the WBG chief said, noting “the stability of China’s currency and the countercyclical nature of its monetary policy.”
As for India, Malpass said the South Asian nation “remains one of the world’s fastest-growing major economies. We expect 6.3 percent growth in its FY23/24.”
As for the big picture, Malpass said that “global growth is expected to be weak this year, slowing to 2 percent from 3.1 percent in 2022.” In this regard, the official brought up the normalization of interest rates, persistent inflation, and the dollar weakening.
The World Bank chief warned about the prospects of a “long period of slow growth, asset repricing, and capital moving in the wrong direction – toward a narrow group of governments and large corporations rather than toward small businesses and working capital that could add to global growth.”
Malpass’ remarks came ahead of the 2023 Spring Meetings of the International Monetary Fund (IMF) and the World Bank Group, held April 10-16 in Washington, DC.
According to the IMF, in its latest growth forecasts for the world economy, China (5.2) and India (5.9) would contribute half of the global growth this year.