Gita Gopinath said that the Indian economy faces many challenges with respect to the financial market. file
Washington:
A top official of the International Monetary Fund (IMF) said today that India is doing well in vaccinating its people and this is certainly helping its economy, as the global financial institution in its latest outlook has announced a plan for India in 2021. It has projected a growth rate of 9.5 percent. .
“We haven’t changed our growth forecast for this year for India. I mean India came out of a very tough second wave and there was a big drop in July, but we don’t have any change (its growth rate (estimated) yet,” IMF chief economist Gita Gopinath told reporters during a virtual conference call on Tuesday.
India’s growth forecast released by the latest World Economic Outlook this summer is unchanged from its previous WEO update for July, but is down three percentage points in 2021 and 1.6 per cent from April’s estimates.
According to the latest WEO update, released ahead of the annual meeting of the IMF and the World Bank, India’s economy which contracted 7.3 per cent year on year due to the COVID-19 pandemic, is expected to grow by 9.5 per cent and 8.5 per cent in 2021. in 2022.
The world is expected to grow at 5.9 per cent in 2021 and 4.9 per cent in 2022. The United States is projected to grow at six per cent this year and 5.2 per cent next year. China, on the other hand, is projected to grow 8 percent in 2021 and 5.6 percent in 2022, the IMF said.
Ms. Gopinath said that the Indian economy is already facing several challenges with respect to the financial market, with regards to the fact that the virus is not yet gone.
Responding to a question, Ms. Gopinath said, “Indians are doing well in terms of immunization rates and that is certainly helpful.”
Malhar Nabar, head of the Department of World Economic Studies in the IMF’s research division that produces the World Economic Outlook (WEO), said there is still room to provide more aid if needed if the pandemic takes a turn for the worse. , to provide it. In a targeted manner to the worst affected families and firms.
“But going forward in the medium term, it was important to put in place a credible medium term strategy to bring the debt to GDP ratio and meet the future growth needs and infrastructure needs of the Indian economy,” Mr. said. Nabar said in response to a question.
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