On April 06, 2021, International Monetary Fund (IMF) in its biannual World Economic Outlook report has hiked its growth projection of India for FY22 by 1% to 12.5% from 11.5% of its January 2021 estimation, due to the normalization of economic activity.
- For FY21, it estimated an 8%(-8%) contraction of the Gross Domestic Product(GDP)and for FY23 the growth forecast was revised to 6.9% from 6.8%.
- The report projected the global economy to grow at 6% in 2021 and 4.4% in 2022 as against a contraction of 3.3% (-3.3%)in 2020.
Global outlook by IMF:
- In comparison with the pre-pandemic forecasts, the average annual loss in per capita GDP for 2020-24 is projected to be 5.7% in low-income countries, 4.7% in emerging markets and at 2.3% in advanced economies.
- Global poverty: As per the report, 95 million people are expected to have entered the ranks of the extreme poor in 2020.
- Among developing economies, China was projected to grow at 8.4% in 2021 and 5.6% in 2022.
Economy Outlook of India by IMF based on COVID-19:
- IMF’s current forecast for India was calculated without including the risks arising from the second wave of COVID -19.
- On April 4, 2021, India has registered more than 100,000 coronavirus cases with 50% of the cases from Maharashtra.
- IMF stated a very severe downside risk to the growth outlook of the Indian economy due to the increase in the number of cases.
Recent Related News:
The International Monetary Fund (IMF) in its latest fiscal monitor update on January 28, 2021, has projected Global public debt to touch 98% of GDP (Gross Domestic Product) at the end of 2020 due to severe challenges imposed on public finances amid COVID-19. It was 84% before COVID-19.
About International Monetary Fund (IMF):
Member Countries– 190
Headquarter – Washington, D.C., United States
Managing Director – Kristalina Georgieva
Economic Counsellor and Research Department Director – Gita Gopinath