India’s GDP: According to the International Monetary Fund’s (IMF) projections released on Tuesday, India will continue to be the world’s fastest growing major economy with a growth rate of 9.5 per cent in this fiscal and 8.5 per cent in the next fiscal.Also Read – Indian Economy: India’s economy will grow at the rate of 8.3%, likely to become the second fastest growing major economy
The IMF’s World Economic Outlook put out GDP growth projections made in July for India, whose Covid-battered economy shrank by 7.3 per cent in the previous fiscal. Also Read – Moody’s Rating: Moody’s improves India’s rating, upgraded from negative to stable
In July, when India was in the grip of a second wave of COVID-19, the IMF cut its forecast by 3 per cent from 12.5 per cent in April before the resurgence of the pandemic. Also Read – Industrial Production: India’s economy started getting back on track, industrial production grew by 11.6 percent in August
Haid’s long-term forecast for India’s GDP growth in 2026 is 6.1 percent.
In the WEO tables, China followed India with 8 percent this year and 5.6 percent for the next year – a 0.1 percent decrease for both years from the forecast in July.
Britain came second this year with a growth of 6.8 percent, followed by France with 6.5 percent and the US with six percent.
The global economy is projected to grow by 5.9 per cent in 2021 and 4.9 per cent in 2022 – 0.1 per cent less than the July forecast for 2021.
“The downward revision for 2021 reflects a decline for advanced economies partly due to supply disruptions and for low-income developing countries, primarily due to worsening pandemic dynamics,” the WEO said.
IMF chief economic expert Gita Gopinath said in her proposal to the WEO, “Global recovery continues, but the pace has weakened due to the pandemic.”
He said, “The recorded global COVID-19 death toll due to the highly transmissible delta variant has approached 5 million and health risks abound. The outbreak of the pandemic has been prolonged in critical links of global supply chains – more supply disruptions than expected, further fueling inflation in many countries.
“Overall, risks to economic prospects have increased and policy tradeoffs become more complex,” he warned.
(With IANS Inputs)