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World Bank: Demonetization chips away at India’s GDP
January 11, 2017, 5:27 pm

India's economy will survive and bounce back from a slight GDP drop in 2017 [Xinhua]

India’s economy will survive and bounce back from a slight GDP drop in 2017 [Xinhua]

A World Bank report – Global Economic Prospects – released Wednesday says that India’s GDP growth will scale back from 7.6 per cent to 7 per cent in 2017 as a direct result of the demonetization policy released in Q4.

“The immediate withdrawal of a large volume of currency in circulation and subsequent replacement with new notes announced by the government in November contributed to slowing growth in 2016,” the World Bank said.

However, it classified India’s economy as “still robust” and forecast that GDP growth would bounce back in coming years.

“India is expected to regain its momentum, with growth rising to 7.6 per cent in Fiscal Year(FY) 2018 and strengthening to 7.8 per cent in FY 2019-20,” the report went on to say.

While the World Bank appeared to acknowledge that the negative impact of demonetization would likely be short term – with the positives resting in liquidity expansion in the banking system, it did warn that the “challenges encountered in phasing out large currency notes and replacing them with new ones may pose risks to the pace of other economic reforms (e.g. Goods and Services Tax, labour, and land reforms)”.

The BRICS Post with inputs from Agencies

4 Responses to World Bank: Demonetization chips away at India’s GDP

  1. Karen Hudes Reply

    January 13, 2017 at 10:43 am

    Prime Minister Narendra Modi’s decision on November 8th to “demonetize” India by removing its Rs 500 and Rs 1000 banknotes can only be understood by realizing that all of the banks in the world are part of a huge conglomerate that the three mathematicians who discovered this arrangement call the “Network of Global Corporate Control.” Stefania Vitali, James B. Glattfelder, and Stefano Battiston at the Federal Institute of Technology in Zurich, Switzerland identified the “network of global corporate control in.

    This network is often referred to as the “Banking Cartel.” The Banking Cartel has been trying to dominate the world. There are two other countries that are now trying to “demonetize” the currencies issued by the Banking Cartel: Venezuela and Australia. Venezuela had to suspend its demonetization program after looting. Australia’s program has not yet begun.

    The World Bank report cited in this article was published by the secretariat of the World Bank. The Banking Cartel has used state capture to try and take over the World Bank and IMF, when in reality, the Board of Governors runs the World Bank and IMF, and manages the world’s monetary gold reserves and other wealth. A coalition for the rule of law on the Board of Governors of the World Bank and IMF is really in charge, and I am speaking for them, as well as for the people who are cleaning up the corruption in the international monetary system. The Global Currency Reset is now under implementation. I am speaking for the United States and voting its shares until the US Constitution of 1789 goes back into force and effect.

  2. Esther Reply

    January 14, 2017 at 1:17 pm

    Prime Minister Narendra Modi´s decision of removing its Rs 500 and Rs 1000 banknotes was not intended to stop corruption inside India?

  3. Ram Reply

    January 15, 2017 at 2:28 am

    If you
    Change with new notes corrupt people make deal with new notes.

  4. Agics Maria Reply

    January 30, 2017 at 3:21 pm

    Thanks Karen Hudes!

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