According to the latest projection released by the International Monetary Fund (IMF) on Tuesday, India’s economy will grow by 9.5 percent in 2021 and 8.5 percent in 2022, after contracting by 7.3 percent owing to the COVID-19 pandemic.
The newest World Economic Outlook growth projection for India is unchanged from the last WEO (World Economic Outlook) update from July this summer, however it is down three percentage points in 2021 and 1.6 percentage points from April projections.
According to the latest WEO update, released ahead of the annual meeting of the IMF and the World Bank, the world is expected to grow at 5.9 per cent in 2021 and 4.9 per cent in 2022.
Meanwhile, the International Monetary Fund (IMF) has predicted that the United States’ economy will grow by 6.0% in 2021 and 5.2% in 2022. It also projected China’s economic growth at 8.0% in 2021 and 5.6% in 2022.
According to the report, the global economy has suffered a lot due to the Covid-19 epidemic. Due to its long-term effect, the size of the global economy will decrease by $ 5.3 trillion in the next five years.
IMF chief economist Gita Gopinath said that the aggregate output for the advanced economy group is likely to go back to pre-COVID levels in 2022 and may exceed 0.9% by 2024. The emerging market and developing economy group (excluding China), on the other hand, are expected to remain 5.5% below the pre-COVID forecast in 2024 leading to larger setback to improvements in their living standards.
The Indian American economist added that projections for commodity exporters have been upgraded due to rising commodity prices. Gopinath also listed down some solutions – vaccinating at least 40% of the population in every country by 2021-end and 70% by mid-2022.
The International Monetary Fund added that the rapid spread of the Delta variant of the virus and the threat of new variants have increased uncertainty about how quickly the pandemic can be overcome.
(With PTI Inputs)