InvestorQ : Why has IMF scaled down India’s GDP growth projections for next year?
diksha shah made post

Why has IMF scaled down India’s GDP growth projections for next year?

Answer
image
Arti Chavan answered.
5 months ago
Follow

The actual story is that even as all other brokers and agencies had already downgraded India’s GDP growth due to COVID 2.0, IMF was still holding it at 12.5% for FY22, which was unrealistic. Now, IMF has scaled down India’s GDP growth projection by a good 300 basis points to 9.5% for FY22. This was revealed by IMF in the most recent edition of World Economic Outlook report or the WEO report, as it is better known.

This puts the IMF projections almost at par with what the RBI has also been saying about growth in India. IMF expects India to grow at the rate of 8.3% in calendar 2021, which would still make India the fastest among the large economies with GDP more than $1 trillion. According to the report, the impact of COVID future variants will be limited for certain countries like the UK and Canada where vaccine penetration has been very high.

6 Views