The International Monetary Fund (IMF) has forecast a growth rate of 9.5 per cent for India in 2021, citing the way it will tackle the second wave of the coronavirus pandemic. While the world is watching, India has already vaccinated a large part of its vast population, raising the prospect of economic growth in the next financial year.
IMF Chief Economist Gita Gopinath said India is recovering from the Covid-19 pandemic, but its growth rate projections by the global financial institution are not to be changed.
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“We don’t have any change in our growth forecast for this year for India. I mean India came out of a very tough second wave and that caused a big drop in July, but we don’t have any change. (in its growth rate estimates) as of now,” Geeta Gopinath told reporters during a virtual conference call on Tuesday.
Ms. Gopinath said that there are many challenges facing the Indian economy with respect to the financial market as the threat of coronavirus has not been completely eradicated.
“Indians are doing well in terms of vaccination rates and that’s definitely helpful,” Gopinath said.
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 by 7.3 per cent per annum due to the COVID-19 pandemic is expected to grow by 9.5 per cent in 2021 and 8.5 per cent in 2021. 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.
(with PTI inputs)
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