After an estimated contraction of 8% in the fiscal year 22020-21 that ended on March 31, India is projected to grow at 12.5 % during the current year of 2021-22. Thereafter, growth is projected to settle down to 6.9% for 2022-23. This is according to the World Economic Outlook (WEO): Managing Divergent Recoveries, released by the IMF as the World Bank IMF Spring Meetings kick-off virtually. IMF economists however said that the growth outlook for India comes along with the significant downside risks because of the current pandemic wave in the country. IMF Chief Economist Gita Gopinath said to the media on 6th April that the projections for India were based on evidence to support the normalization of economic activity. But, these forecasts preceded the current wave of COVID-19 in India “ which is quite concerning,” said the IMF. Economist Malhar Nabar said "The current growth projections already take “a fairly conservative view. But it`s true that with this very worrying uptick in cases…poses very severe downside risks to the growth outlook for the economy,”. After an estimated contraction of 3.3% in 2020 (calendar year), the global economy is expected to grow 6% this year and 4.4% next year, although there are significant divergences within and between countries. Projections for 2021 are slightly higher than they were in October 2020 due to fiscal support in some large economies and vaccine-supported recovery. The U.S.`s 1.3 percentage point forecast upgrade, especially, contributed to this, resulting in U.S. growth projections of 6.4% and 3.5% this calendar year and next. The COVID-19 pandemic is expected to `leave smaller scars` than the 2008 financial crisis, due to the unprecedented policy response. However, emerging markets and low-income countries are expected to suffer more medium-term than their high-income counterparts.
After an estimated contraction of 8% in the fiscal year 22020-21 that ended on March 31, India is projected to grow at 12.5 % during the current year of 2021-22. Thereafter, growth is projected to settle down to 6.9% for 2022-23. This is according to the World Economic Outlook (WEO): Managing Divergent Recoveries, released by the IMF as the World Bank IMF Spring Meetings kick-off virtually. IMF economists however said that the growth outlook for India comes along with the significant downside risks because of the current pandemic wave in the country. IMF Chief Economist Gita Gopinath said to the media on 6th April that the projections for India were based on evidence to support the normalization of economic activity. But, these forecasts preceded the current wave of COVID-19 in India “ which is quite concerning,” said the IMF. Economist Malhar Nabar said "The current growth projections already take “a fairly conservative view. But it`s true that with this very worrying uptick in cases…poses very severe downside risks to the growth outlook for the economy,”. After an estimated contraction of 3.3% in 2020 (calendar year), the global economy is expected to grow 6% this year and 4.4% next year, although there are significant divergences within and between countries. Projections for 2021 are slightly higher than they were in October 2020 due to fiscal support in some large economies and vaccine-supported recovery. The U.S.`s 1.3 percentage point forecast upgrade, especially, contributed to this, resulting in U.S. growth projections of 6.4% and 3.5% this calendar year and next. The COVID-19 pandemic is expected to `leave smaller scars` than the 2008 financial crisis, due to the unprecedented policy response. However, emerging markets and low-income countries are expected to suffer more medium-term than their high-income counterparts.
