The World Bank has lowered its global growth forecast, warning that risks to growth have increased since its earlier projection in January. The world economy will grow at 2.4% in 2016 and at 2.8% in 2017, the World Bank said in its June report on global economic prospects, lower than the earlier forecast of 2.9% and 3.1%, respectively, mainly on account of a slower than expected recovery in advanced economies.

India will remain one of the fastest growing major economies, ahead of China, for the next three years, the report said. However, it lowered India’s growth projections marginally by 0.2% to 7.6% for 2016-17 and 7.7% in 2017-18, citing the drag by exports on economic activity.

It maintained China’s growth projections at 6.7% and 6.5% for 2016 and 2017, respectively. A global slowdown and fall in commodity prices have shrunk world trade projections. While India has benefitted from the fall in oil prices through a reduction in the import bill, its exports have shrunk for 17 consecutive months as of April.

The World Bank’s growth projections for India are in line with the growth estimates put out by other agencies. The International Monetary Fund, in April, forecast that India will grow at 7.5% in 2016-17. The Reserve Bank of India has also projected growth at 7.6% in 2016-17. However, with the monsoon expected to be good after two consecutive years of deficient rain, the government expects the economy to grow at more than 7.6% this fiscal.