UN hails India for leading economic recovery in South Asia

New Delhi, May 30 (PTI) The United Nations has hailed
India for leading the economic recovery in South Asia and said
the impressive growth in the country along with that in China
is expected to result in a 1.5 per cent increase in global
demand for oil during the current financial year.
In its report titled '2010 World Economic Situation and
Prospects', the global body said rapid expansion in services
and manufacturing sectors were the major reasons for India's
growth.
"South Asia proved more resilient to the global economic
downturn than other developing regions. The recovery is led by
India, where growth accelerated to 7 per cent in the second
half of 2009 due to a rapid expansion in manufacturing and in
services sector," the report by the UN's Department for
Economic and Social Affairs said.
It said demand for oil is expected to grow by 1.5 per
cent in 2010, mainly due to the measured increase in demand
from India, China and other major developing countries.
The OPEC (Organisation of Petroleum Exporting Countries)
had earlier pegged global oil demand at 85.38 million barrels
per day.
The UN projected India's economic growth rate at 7.9 per
cent in 2010, while forecasting 8.1 per cent growth rate for
2011.
"A recovery of exports and a further strengthening of
investment and consumption demand is expected to lift growth
in India to 7.9 per cent in 2010 and 8.1 per cent in 2011,"
the report added.
Commenting on inflation in India, it said the Reserve
Bank has already shifted its focus from supporting the
recovery process to containing price increases.
The average rate of inflation in South Asia, however,
will remain constant in 2010, the UN said.
"Although the average rate of inflation is forecast to
remain constant in 2010, pressures remain elevated in most
countries, especially for food products and utilities," it
said.
About job losses, the UN said the labour market was
likely to witness a marked improvement in next two years in
the region.
"Labour markets across South Asia deteriorated in 2009 as
regional unemployment rates edged up and the proportion of
workers in vulnerable employment conditions increased. These
adverse trends are expected to be partly reversed in 2010 and
2011," it added.
The report projected that the average growth is expected
to accelerate to 6.5 per cent in 2010 and 6.9 per cent in 2011
in the region. PTI MPB
RBT