United Nations: India's recovery is on a solid path", the UN said on Thursday reporting that the country recorded the highest estimated growth rate among the major economies last year and is set to be on the same trajectory during this year and the next.

The UN's annual World Economic Situation and Prospects (WESP) report estimated the growth rate of India's gross domestic product (GDP) at 9 percent last year and forecast it to moderate to 6.7 percent this year and 6.1 percent next year but still retain the highest growth rates among the large economies.

In 2020, the year Covid-19 pandemic struck the world. India's economy had shrunk by 7.1 per cent-a a negative growth rate-according to the report.

China, which came next among the large economies, was estimated to have grown by 7.8 percent last year and forecast to grow by a cent next year.

Overall, the global economy's growth was estimated to be 5.5 percent last year, bouncing back from a shrinkage of 3.4 percent in 2020. The growth projections are 4 percent this year and 3.5 percent in 2023.

The WESP raised the growth estimate for last year by 1.7 percent 1.71 and growth projection for this year by 0.8 percent from the expectations in its report a year ago.

It described slowing from 9 percent last year to 6.7 per 6. cent this year to waning base effects.

While "robust export growth and public investments underpin economic activity", the WESP warned that "high oil prices and coal shortages could put the brakes on economic activity in the near term." "It will remain crucial to encourage private investment to support in clusive growth beyond the recovery." it advised.

"Inflation is expected to deceler ate throughout 2022, continuing a trend observed since the second half of 2021 when relatively restrained food prices compensated for higher oil prices," the report said while at taching a note of caution: "A sudden and renewed rise in food inflation, however, to unpredictable weath er, broader supply disruptions and higher agricultural prices, could un dermine food security, reduce real incomes mes and increase hunger across the South Asia) region."

The report estimated India's con sumer price inflation at 5.9 per cent last year and projected to go down to 5.6 per cent this year and 5.3 per cent next year

The WESP said that it expected the Reserve Bank to raise interest rates throughout this year. In its snapshot of the world economy, the report said: "The global eco nomic recovery is facing significant headwinds amid new waves of Cov id-19 infections, persistent labour market challenges, lingering supply chain challenges, and rising inflationary pressures."

"The momentum for growth-es pecially in China, the United States and the European Union slowed considerably by the end of 2021, as the effects of monetary and fiscal stimuli began to recede and major supply-chain disruptions emerged." according to the report.

Assessing the scenario in the report, Secretary-General Antonio Guterres said: "In this fragile and une ven period of global recovery, the World Economic Situation and Prospects 2022 calls for better targeted and coordinated policy and financial measures at the national and international levels."

Source: IANS