International Monetary Fund’s (IMF) World Economic Outlook:
The latest edition of the International Monetary Fund’s (IMF) World Economic Outlook has raised its Financial Year (FY) 2021 growth forecast for India to 12.5% from 11.5% estimated earlier in January 2021.
- Indian economy is expected to grow by 12.5% in 2021 and 6.9% in 2022.
- In 2020, India’s economy witnessed an estimated contraction of 8%.
- The growth rate for India in 2021 is stronger than that of China.
- China was the only major economy to have a positive growth rate of 2.3% in 2020 and is expected to grow by 8.6% in 2021 and 5.6% in 2022.
- The IMF predicted stronger recovery in 2021 and 2022 with growth projected to be 6% in 2021 and 4.4% in 2022.
- In 2020, the global economy contracted by 3.3%
- The contraction for 2020 is 1.1% points smaller than the previous projection, reflecting:
- Higher-than-expected growth outturns in the second half of the year for most regions after lockdowns were eased and as economies adapted to new ways of working.
- Additional fiscal support in a few large economies and the anticipated vaccine-powered recovery in the second half of the year.