India Will Witness A 10.3% GDP Fall This Year, According To IMF
The IMF shared that the Indian GDP will see a contraction of 10.3% this year, though it is expected to bounce back with 8.8% growth in 2021, when the pandemic is less intense
A fresh report by the International Monetary Fund (IMF) reveals that India will see a sharp contraction this year (2020-21) of -10.3%, caused primarily due to effects of the nationwide Coronavirus lockdowns.
Gita Gopinath, Chief Economist of IMF said that the nation will however bounce back in 2021 with an 8.8% growth, as will other emerging countries like Indonesia. In its first quarter, India’s Gross Domestic Product (GDP) plummeted severely at 23.9%, making it the worst performing economy amongst the G20 (Group of 20) countries. The pandemic has led to a massive decrease in the domestic demand because of the unsteady consumption and the collapse in investments.
However, as compared to the June projection of -5.2%, there will be a global decline of -4.4% which is a better picture than a few months back.
Gopinath also stressed that better medical facilities, vaccine and widespread testing can improve the situation and enable the recovery faster and better. Before this, the Reserve Bank of India (RBI) had reported similar GDP contraction numbers for India at 9.5% decline.
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