New Delhi: As per the latest projections released by the International Monetary Fund (IMF) on Tuesday, India’s economy is exptected to grow by 9.5 per cent in 2021. For the financial year 2022-23 also, the growth forecast has been kept at 8.5 per cent. Due to Coronavirus in India, the nation’s economic growth had contracted by 7.3 per cent.
According to the WEO’s (World Economic Outlook) latest report, this fiscal year the global economic growth rate will be 5.9 percent and 4.9 per cent in the financial year 2022-23. Earlier in July, it had kept the global growth rate estimate at 6 per cent.
Chief Economist of the IMF, Gita Gopinath, told news agency PTI that the global growth projection for 2021 has been revised down to 5.9 per cent, compared to July forecast and remains unchanged at 4.9 per cent for 2022.
According to the report, the global economy has suffered a lot due to the Covid-19 epidemic. Due to its long-term effect, the size of the global economy will decrease by $ 5.3 trillion in the next five years.
“The outlook for the low-income developing country group has darkened considerably due to worsening pandemic dynamics. The downgrade also reflects more difficult near-term prospects for the advanced economy group, in part due to supply disruptions, she said.
“Partially offsetting these changes, projections for some commodity exporters have been upgraded on the back of rising commodity prices. Pandemic-related disruptions to contact-intensive sectors have caused the labour market recovery to significantly lag the output recovery in most countries, the Indian-American economist added.
Commenting on divergence in economic prospects across nations, Gopinath said aggregate output for the advanced economy group is expected to regain its pre-pandemic trend path in 2022.
“By contrast, aggregate output for the emerging market and developing economy group (excluding China) is expected to remain 5.5 per cent below the pre-pandemic forecast in 2024, resulting in a larger setback to improvements in their living standards, she added.
(With PTI Inputs)
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