In its July 2021 World Economic Outlook (WEO) titled ‘Fault Lines Widen in the Global Recovery’, the International Monetary Fund (IMF) has reduced India’s Gross Domestic Product (GDP) growth forecast in FY22 to 9.5 percent from 12.5 percent (April 2021 projection) and raised the growth forecast for FY23 to 8.5 percent from 6.9 percent.
i.The IMF has unchanged the global economic growth forecast in 2021 to 6 percent and for 2022 it was estimated to be 4.9 percent.
ii.The global trade volumes are projected to expand 9.7 percent in 2021 and moderate to 7.0 percent in 2022.
iii.India and Indonesia were mentioned as the most suffered among G20 economies.
iv.It reported a gradual recovery of the Indian economy from a deep contraction in FY21 (-7.3 percent).
v.It reported high inflation expectations in emerging markets and developing economies due to high food prices.
Recent GDP growth Projection of India in FY22:
i.World Bank – 8.3 percent
ii.Organisation for Economic Co-operation and Development (OECD) – 9.9 percent
iii.Asian Development Bank – 10 percent
vi.Reserve Bank of India – 10.5 percent
v.Moody’s – 9.3 percent
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About International Monetary Fund (IMF):
Establishment – 1944
Headquarters – Washington, D.C., United States
Member Countries – 190
MD – Kristalina Georgieva
Economic Counsellor and Research Department Director – Gita Gopinath