India’s economy is expected to grow by 9.5% in 2021 and 8.5% in 2022, the International Monetary Fund predicted in its World Economic Outlook report on Tuesday.
The International Monetary Fund’s projections about India remain the same as those made in its previous report released in July. In April, however, the global financial institution had predicted that India’s economy will grow by 12.5% in 2021 and 6.9% in 2022.
India’s Gross Domestic Product had contracted by 7.3% in 2020-’21.
International Monetary Fund’s chief economist Gita Gopinath told reporters that India is “doing well” in terms of vaccination rates and said that this will help in economic growth, PTI reported.
She added that the downgrade from April to July was on account of a “very, very tough second wave” of the coronavirus pandemic in India.
Meanwhile, the International Monetary Fund has predicted that the United States’ economy will grow by 6.0% in 2021 and 5.2% in 2022. It also projected China’s economic growth at 8.0% in 2021 and 5.6% in 2022.
The organisation has predicted that low-income developing countries will grow at 3.0% in 2021 and 5.3% in 2022.
“The global economy is projected to grow 5.9% in 2021 and 4.9% in 2022, 0.1% point lower for 2021 than in the July forecast,” it said.
The International Monetary Fund added that the rapid spread of the Delta variant of the virus and the threat of new variants have increased uncertainty about how quickly the pandemic can be overcome.