World Bank pegs India's growth at 5% in financial year 2020, projects recovery next year

The World Bank has projected India's growth at five per cent in the current financial year 2019-20 which is set to recover to 5.8 per cent in the following fiscal year.

In its latest semi-annual Global Economic Prospects report, the World Bank said that weakness in credit from non-bank financial companies is expected to linger.

"In India, where weakness in credit from non-bank financial companies is expected to linger, growth is projected to slow to 5 per cent in the financial year 2019-20, which ends March 31 and recover to 5.8 per cent the following fiscal year."

Also read: India forecasts 2019/20 GDP growth rate at 5%

Globally, the bank projected that economic growth is projected to recover to 2.5 per cent in 2020 from 2.4 per cent in 2019.

However, the bank has noted that downside risk persists that might have an impact on the world's growth.

"Nevertheless, downside risks predominate including the possibility of a re-escalation of global trade tensions, sharp downturns in major economies, and financial disruptions in emerging market and developing economies," the report said.