In its October 2021 World Economic Outlook (WEO) titled ‘Recovery During a Pandemic Health Concerns, Supply Disruptions, and Price Pressures’, the International Monetary Fund (IMF) has retained India’s Gross Domestic Product (GDP) growth forecast for 2021 unchanged at 9.5 percent (July 2021 forecast).
- India’s GDP growth forecast for 2022 was also unchanged at 8.5 percent.
i.The IMF has reduced the global economy growth in 2021 by 0.1 percent to 5.9 percent (from 6 percent of July 2021 projection) and the growth was projected at 4.9 percent in 2022.
- Beyond 2022 global growth is projected to moderate to about 3.3 percent
ii.Global Trade volumes are expected to grow by around 10 percent in 2021 and moderating to about 7 percent in 2022.
iii.India’s consumer price index-based inflation is expected to be at 5.6 percent in 2021(reduced from 6.2 percent in 2020) and expected inflation to be at 4.9 percent in 2022.
iv.Other growth projections:
- Global rating agency S&P expects India to grow by 9.5 percent in FY22, while Moody’s has projected a GDP growth of 9.3 percent.
- The World Bank retained its India growth projection for FY22 at 8.3 percent (same as its June 2021 forecast).
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The IMF allocated a Special Drawing Rights (SDRs) 12.57 billion (equivalent to around USD 17.86 billion at the latest exchange rate) to India in August 2021.
About International Monetary Fund (IMF):
Establishment – 1944
Headquarters – Washington, D.C., United States
Member Countries – 190
MD – Kristalina Georgieva