Tuesday, March 5, 2024

India would be the fastest growing economy in 2022: IMF

The International Monetary Fund (IMF) has projected India to be the fastest-growing economy in 2022. 

In its World Economic Outlook (WEO), released ahead of the annual meeting of the IMF and the World Bank, the IMF has maintained that India’s economy, which contracted by 7.3 percent due to the Covid-19, is expected to grow by 9.5 percent in 2021 and 8.5 percent in 2022. 

IMF Chief Economist Gita Gopinath said that while the Indian economy has already faced many challenges concerning the financial market, it is doing well in terms of vaccination rates, which is certainly helpful.  It also highlighted that grants from the Indian government to vaccine producers had encouraged the development of Covid-19 vaccines.

“We didn’t have a change our growth forecast for this year for India. I mean India came out of a very, very tough second wave and that led to a big downgrade in July but we have no change (in its growth rate projections) as of now,” she told reporters during a virtual conference.

 Also, as per the latest WEO update, the world is expected to grow at 5.9 percent in 2021 and 4.9 percent in 2022.

Meanwhile, the IMF has cut its China GDP growth projections for 2021 and 2022 by 10 basis points each – to eight and 5.6 percent, respectively.

With this, India will again get the tag of the fastest-growing large economy globally, both in financial years 2022 and 2023.

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