Europe’s economy is encountering severe inflation due to the Russian-Ukraine war and endangering energy shortage, and now all eyes are on India, as its Quarter 1 GDP growth is 13.5%.
2022 was expected to be the year of bouncing back after two tough phases of the pandemic, but the economies worldwide are not completely recovered yet. Data indicates that deteriorating droughts, heavy rain and storms in some of the world’s largest economies could be a cause of USD 5.6 trillion in losses to GDP by 2050.
Heavy rains have caused floods in China and South Korea, while drought has threatened farmers’ harvests across Europe. Based on the Emergency Events Database maintained by CRED (Centre for Research on the Epidemiology of Disasters), last year’s harsh droughts, floods, and storms resulted in worldwide losses of more than $224 billion.
India is regarded as one of the world’s fastest-growing economies, with GDP predicted to be in the double digits of 13% to 16%. The last time India’s GDP grew faster than the pandemic-depressed level was in April-June 2021, when it increased by 20.1 %. Forecasts for the most recent quarter vary from 9.0 to 21.5 %.
However, India’s consumer spending was affected considerably due to increased food and fuel prices. The Indian government, along with RBI, has been able to remain unaffected by inflation over the last three months. The Reserve Bank of India is anticipating the actual GDP growth projection for FY 2022-23 at 7.2%.
As per a Bloomberg survey of economists, the GDP is estimated to increase 15.4% in the first quarter compared to last year’s first quarter. It is the fastest growth since the first quarter of 2021.