In its Economic Outlook, Interim Report September 2021, the Organisation for Economic Co-operation and Development (OECD) has reduced India’s Gross Domestic Product (GDP) growth forecast in FY22 to 20 basis points (bps) to 9.7 percent and for FY23 the GDP growth forecast was reduced by 30 bps to 7.9 percent.
- Inflation: OECD has increased the inflation forecast of India by 50 bps to 5.9 percent for FY22 and by 70 bps to 5.5 percent for FY23.
- OECD has projected the Global GDP to grow by 5.7 percent in 2021 and 4.5 percent in 2022.
Key Points of the Report:
i.OECD reported large differences among the nations in the vaccination rate and the economic recovery.
ii.The consumer price inflation in India was 6.2 percent in FY21.
iii.The output shortfall in the G20 emerging-market economy at the end of 2022 is projected to be twice that in the median G20 advanced economy, particularly high in India and Indonesia.
iv.The report mentioned India as the worst hit among major economies. The real GDP of India in the June quarter (Q1 FY22) was 15 percent lower than the pre-pandemic forecast and around 7 percent lower than the (Q3 FY21) December quarter.
v.As per the High-frequency activity indicators such as Google location-based measures of retail and recreation mobility, the Indian market is continuing to rebound from its pre-pandemic levels.
Recent Related News:
The Organization for Economic Cooperation and Development (OECD) stated that 130 countries including G20 members, India & China have joined the G20-OECD Tax Framework Deal for Global Minimum Corporate Tax.
About Organisation for Economic Co-operation and Development (OECD):
It is an international organisation that works to build better policies for better lives
Headquarters – Paris, France
Secretary-General – Mathias Cormann
Members Countries – 38