World Bank President Ajay Banga believes the global economic volatility caused by tariff disputes and fears of a US recession may be short-lived. In an interview with CNBC-TV18, he noted that these are risks rather than certainties and could ease if trade tensions are resolved.”If things continue the way they are today, meaning if uncertainty and volatility remains part of the system, then definitely there will be a slowdown in global growth,” Banga stated.
Banga noted the increased volatility in the global economic system compared to the recent past, which inevitably creates caution among CEOs and investors regarding long-term decisions. However, he refrained from making definitive predictions about a severe and prolonged downturn.
Interestingly, despite the overarching concerns, Banga observed that certain major economies, like the United States, continue to demonstrate strong economic performance. This indicates a complex global scenario where specific regions may remain resilient even amidst broader uncertainties.For India, Banga remains optimistic about its long-term growth prospects and its ambition to become a high-income country by 2047.He highlighted the importance of focusing on domestic strengths and strategic sectors such as infrastructure, agriculture, healthcare, tourism, and manufacturing to drive job creation and insulate the economy from global volatility.For the entire discussion, watch the accompanying videoAlso Read | India has offered zero tariffs on most products, Piyush Goyal likely to visit US in two weeks: Sources
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