On June 25, 2020,The International Monetary Fund (IMF) in the June 2020 update “A Crisis Like No Other, An Uncertain Recovery” of its flagship World Economic Outlook (WEO), has predicted that the Indian economy will have a big 4.5 % contraction in 2020 and it will come down to a historic low.
This historical decline will be the lowest level since 1961 due to the Coronavirus (covid-19) epidemic, its prevention measures and slowdown of economic activity.
Expects a Silverline:
However, it is predicted that in 2021 the country will return to the fast track and that year it may see a strong economic growth of 6.0 %.
At the same time, the IMF has reported a global growth rate of negative 4.9 % in 2020,which is 1.9 % points lower than the estimate made in April 2020 World Economic Outlook (WEO) forecast. For 2021, growth rate is expected to be 5.4 %.
China only country to see positive growth:
The coronavirus (COVID-19) epidemic has had more negative effects in the first half of 2020. In China, where recovery continues from the first quarter’s decline, the growth rate is estimated at 1 % in 2020.
Let us know that in the year 2019, India’s growth rate was 4.2 % & 2020 IMF’s latest estimate of India’s 2020 estimate is -6.4% less than it’s the April forecast. The projected growth rate of 6% in 2021 is -1.4% less than its April forecast.
About International Monetary Fund (IMF):
Headquarters– Washington, D.C., United States(US).
Managing Director (MD)- Kristalina Georgieva
Chief Economist– Gita Gopinath.