Indian economy to grow at 9.5 per cent this year and 8.5 in 2022: IMF

Indias economy which contracted by 73 per cent due to the Covid19 pandemic is expected to grow by 95 per cent in 2021 and 85 per cent in 2022 according to latest projections released by the International Monetary Fund on TuesdayIndias growth projection released by the latest World Economic Outlook remains unchanged from its previous WEO World Economic Outlook update of July this summer but is a threepercentage point in 2021 and 16 percentage point drop from its April projectionsAccording to the latest WEO update released ahead of the annual meeting of the IMF and the World Bank the world is expected to grow at 59 per cent in 2021 and 49 per cent in 2022The United States is projected to grow at six per cent this year and 52 per cent the next yearChina on the other hand the IMF said is projected to grow at 8 per cent in 2021 and 56 per cent in 2022Also read Rise in GDP for Govt is rising prices of Gas Diesel Petrol Rahul GandhiGita Gopinath Chief Economist of the IMF said that compared to their July forecast the global growth projection for 2021 has been revised down marginally to 59 per cent and is unchanged for 2022 at 49 per cent However this modest headline revision masks large downgrades for some countriesThe outlook for the lowincome developing country group has darkened considerably due to worsening pandemic dynamics The downgrade also reflects more difficult nearterm prospects for the advanced economy group in part due to supply disruptions she saidPartially offsetting these changes projections for some commodity exporters have been upgraded on the back of rising commodity prices Pandemicrelated disruptions to contactintensive sectors have caused the labour market recovery to significantly lag the output recovery in most countriesiquest the IndianAmerican economist addedObserving that the dangerous divergence in economic prospects across countries remains a major concern she said aggregate output for the advanced economy group is expected to regain its prepandemic trend path in 2022 and exceed it by 09 per cent in 2024By contrast aggregate output for the emerging market and developing economy group excluding China is expected to remain 55 per cent below the prepandemic forecast in 2024 resulting in a larger setback to improvements in their living standardsiquest she addedNoting that a principal common factor behind these complex challenges is the continued grip of the pandemic on global society Gopinath said that the foremost policy priority is therefore to vaccinate at least 40 per cent of the population in every country by end2021 and 70 per cent by mid2022This will require highincome countries to fulfill existing vaccine dose donation pledges coordinate with manufacturers to prioritise deliveries to COVAX in the nearterm and remove trade restrictions on the flow of vaccines and their inputsiquest she saidAt the same time closing the USD 20 billion residual grant funding gap for testing therapeutics and genomic surveillance will save lives now and keep vaccines fit for purpose Looking ahead vaccine manufacturers and highincome countries should support the expansion of regional production of COVID19 vaccines in developing countries through financing and technology transfers she saidGopinath said that another urgent global priority is the need to slow the rise in global temperatures and contain the growing adverse effects of climate changeThis will require more ambitious commitments to reduce greenhouse gas emissions at the upcoming United Nations Climate Change Conference COP26 in GlasgowA policy strategy that includes an international carbon price floor adjusted to country circumstances a green public investment and research subsidy push and compensatory targeted transfers to households can help advance the energy transition in an equitable way Just as importantly advanced countries need to deliver on their earlier promises of mobilising USD 100 billion of annual climate financing for developing countries Gopinath saidThis story has been sourced from a third party syndicated feed agencies Midday accepts no responsibility or liability for its dependability trustworthiness reliability and data of the text Midday managementmiddaycom reserves the sole right to alter delete or remove without notice the content in its absolute discretion for any reason whatsoever