The Great Recession and Developing Countries: Economic Impact and Growth Prospects (Part 1 of 2)

India: Rapid Recovery and Stronger Growth after the Crisis

Figure 6.5. India: Rising Investment Rates and GDP Growth 12

45 40

10 35

% GDP

25 6 20

percent

15 10

2 5 0

0 1994

1996

1998

2000

2002

investment-to-GDP ratio (left axis)

2004

2006

2008

GDP growth (right axis)

Source: World Bank, World Development Indicators Database.

Figure 6.6. India: Contributions to GDP Growth 20

percent

15 10 5 0 –5 –10 2000–01 2001–02 2002–03 2003–04 2004–05 2005–06 2006–07 2007–08 2008–09 Pvt. consumption

investment

imports

exports

others

GDP

Source: Reserve Bank of India, Handbook of Statistics.

gov’t. consumption

241

The Great Recession and Developing Countries: Economic Impact and Growth Prospects (Part 1 of 2)

Published on Nov 30, 2010

World Bank Publications

About

The 2008-09 financial crisis, which originated in the United States and rapidly spread to the rest of world, resulting in the most severe and intense Great Recession since World War II, has posed new challenges for international policy coordination and the management of national economies. Questions are being raised about globalization, which has been a powerful engine of economic growth over the past three decades but exposes countries to more volatility and increases risk. What policies and reforms increase the resilience of developing economies to such external shocks? Which institutional arrangements and policy frameworks would allow them to respond most quickly and effectively? What role is there for international policy coordination and for emerging economies?

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