Washington: The Indian economy might have declined by 7.3 per cent owing to the COVID-19 pandemic last year. However, the International Monetary Fund has some positive predictions for its future.
According to its latest projections, India’s economy is expected to improve by 9.5 per cent by the end of 2021 and 8.5 per cent by 2022. The IMF released these latest predictions this Tuesday.
Although, according to the report released by the World Economic Outlook, India’s growth projection remains unaltered in comparison to its previous update released in July this year. However it drops by 1.6 per cent point from its projections released in April 2021.
Alternatively, the WEO has also made predictions for the world economy. In its recent update released ahead of the annual meetings of the World Bank and IMF, the global economy has been projected to grow by 5.9 per cent in 2021 and 4.9 per cent in 2022.
The report also says that the United States’ economy could grow by 6 per cent by the end of this year and 5.2 per cent by the next year.
Similarly, IMF’s report has stated that China will grow by 8 per cent this year and it is expected to grow by 5.6 per cent in the coming year.
However, compared to the advanced economies, the low income countries have been projected to suffer in the future due to disruptions in the supply chains and businesses as a result of the ongoing pandemic.