IMF Reduces India’s Growth Forecast To 9.5% From 12.5% For FY 2021-22
- ByStartupStory | July 28, 2021
The International Monetary Fund, IMF reduces India’s growth forecast to 9.5% from 12.5% . IMF’s chief economist Gita Gopinath said the revision in growth forecast reflects an important “extent differences” in coronavirus disease (Covid-19) developments as the highly contagious Delta variant is becoming dominant across the world. “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,” Gopinath, economic counsellor and director of the research department at the IMF, said in a blog post. On the other hand, the heads up IMF has estimated for the fiscal year 2022-23sees a growth of 8.5% from the previous 6.9%.
The Economic Survey tabled in January ahead of this year’s budget session projected India to grow by 11% during the 2021-22 fiscal year. However, these projections of high growth are on a lower base since India’s Gross Domestic Product (GDP) shrank by 7.3% in 2020-21.IMF’s World Economic Outlook Update for July 2021 stated that India’s growth prospects have been downgraded following the second Covid wave and “expected slow recovery in confidence from that setback.” The report noted “similar dynamics” of economic growth at work in five Southeast Asian countries – Indonesia, Malaysia, Philippines, Thailand, and Vietnam – where recent Covid waves are causing a “drag on activity.” As the global economic recovery continues with the opening of economies, Gopinath highlighted the “widening gap” between advanced economies and developing economies. She said the latest global growth forecast of 6% for 2021 remains unchanged, but “the composition has changed”.
Follow Startup Story
Related Posts
