International Monetary Fund (IMF) has retained its projection for India’s economic growth in the current financial year at 9.5 per cent, even as it has moderately scaled down its forecast for the world economy during 2021 by 10 basis points to 5.9 per cent in view of worsening Covid dynamics and supply disruptions.
In its World Economic Outlook (WEO), the IMF has maintained India’s gross domestic product (GDP) estimates for next financial year at 8.5 per cent, unchanged from its July projections.
The WEO, titled ‘Recovery During a Pandemic Health Concerns, Supply Disruptions, and Price Pressures’, has forecast world economic growth at 4.9 per cent for 2022, the same as earlier.
The IMF has cut its China GDP growth projections for 2021 and 2022 by 10 basis points each – to eight and 5.6 per cent, respectively.
With this, India will again get the tag of the fastest-growing large economy in the world, both in FY22 and FY23. In 2020, China’s was the only major economy that had registered growth. While it had grown 2.3 per cent last year, India’s had contracted by 7.3 per cent.