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 6.16. Real Sector Impact of the Global Crisis a. Industrial production (3-month average) 35 30 25

growth, %

20 15 10 5 0 –5

Jan M 07 ar -0 M 7 ay -0 Ju 7 l-0 Se 7 p No -07 v0 Jan 7 -0 M 8 ar M 08 ay -0 Ju 8 l-0 Se 8 pNo 08 vJan 08 M 09 ar -0 9

–10

IIP basic goods intermediate goods

capital goods consumer goods

b. Core sector growth rate (3-month average) 20

growth rate, %

r-0 Ju 7 n0 Au 7 g0 O 7 ct -0 De 7 c0 Fe 7 b08 Ap r-0 Ju 8 n0 Au 8 g0 O 8 ct -0 De 8 c0 Fe 8 b09

–5

coal

steel

Source: CSO. Note: IIP = index of industrial production.

crude oil

steel

petroleum refinery

267

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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