At a time when people around the world were riding high on early signs of economic recovery, the World Bank (WB) brings them back to the ground reality. According to the WB, which has revised its forecasts on global economic growth to -2.9% in 2009, down from -1.7% projected in Mar’09, the recovery is expected to be very gradual. Have a look at the WB's revised GDP forecasts for 2009 and 2010.
One interesting thing you must have noticed about Indian and Chinese economies. Growth forecasts for both the nations have been revised upward. Now, does it say that the decoupling hypothesis was not a complete absurd and it’s just a beginning? May be a couple of decades later this blissful thought becomes a reality.
Well, for me it’s too early to comment on that. Personally, I don’t believe in ‘decoupling’. If you have views on that please share.
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