World economy to contract by 3%: IMF 

#GS3 #Econony 

India’s growth projected to rebound to 7.4% in 2021 from 1.9% in 2020 

  • India’s growth is expected to dip to 1.9% in 2020 and rebound to 7.4% in 2021, as per the World Economic Outlook (WEO) released by the International Monetary Fund’s (IMF). 
  • India’s growth projection for 2020 is 3.9% less than what was projected in the January update to the WEO while its rebound in 2021 is 0.9 % higher than the January projection. 
  • Assuming the pandemic fades in the second half of this year, with containment efforts gradually easing up, the world economy is projected to grow at 5.8% in 2021 as economic activity normalises, aided by policy. 
  • The economic impact of the disease depends on a number of factors and their unpredictable interaction, including the pandemic’s pathway, the intensity and effectiveness of containment efforts, significant tightening of global financial market conditions and so forth. 
  • Fiscal measures should be two-fold, cushioning the impact on the most-exposed households and businesses and reducing firm closures. 

Emerging Asia is projected to be the only region that grows in 2020, at a rate of 1% — still more than 5 percentage points below the previous decade’s average.

 

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