International Monetary Fund projects India’s growth rate at 9.5 per cent for current fiscal year
International Monetary Fund has projected India’s growth rate at 9.5 per cent for the current fiscal year. For the next Financial Year 2022-23, IMF expects economic growth of 8.5 per cent, larger than the 6.9 per cent it had projected in April.
Forecast for the current year 2021-22 is lower than the 12.5 per cent growth in GDP that the IMF had projected in April before the second wave of COVID-19 took a grip. In its latest World Economic Outlook, IMF said, growth prospects in India have been downgraded following the severe second COVID wave during March-May and expected slow recovery in confidence from that setback.
India’s economy is gradually recovering from a deep contraction in the fiscal year ended 31st March this year 7.3 per cent and a subsequent severe second wave of COVID-19. However, India’s growth prospects for Financial Year 2022 remains higher than all other major economies. China’s GDP is projected to grow at 8.1 per cent and the US at seven per cent. Overall, the global economy is projected to grow six per cent in 2021 and 4.9 per cent in 2022. The 2021 global growth forecast is unchanged from the April but with offsetting revisions.
IMF’s Chief Economist Gita Gopinath said, our latest global growth forecast of six per cent for 2021 is unchanged from the previous outlook, but the composition has changed. The Economist said, the global economic recovery continues, but with a widening gap between advanced economies and many emerging markets and developing economies. Faster-than expected vaccination rates and return to normalcy have led to upgrades, while lack of access to vaccines and renewed waves of COVID-19 cases in some countries, notably India, have led to downgrades, she added.