New Delhi, Jan 27: The International Monetary Fund (IMF) has pegged contraction in India’s economy at eight per cent in the current financial year, higher than 7.7 per cent projected by the official advance estimates. However, it expected the growth to rise to 11.5 per cent in the next financial year before slowing down to 6.8 per cent, helping the economy regain its tag of the fastest growing large economy in the world in both the years.
IMF revises India growth forecast, sees GDP shrinking at sharper 8% in FY21
In the World Economic Outlook IMF said the second quarter GDP numbers for India surprised it on the upside. India’s economy declined by 7.5 per cent in the quarter, while most experts had expected it to be in the double digits. The Fund was also surprised on the upside by the growth numbers for Australia, Euro Area, Japan, South Korea, New Zealand, Turkey and the United States for the same quarter.
The IMF had earlier expected India’s economy to decline by 10.3 per cent in FY21. However, the second quarter figure helped it revise the number. The IMF had also projected the economy to grow by 8.8 per cent in FY22, but now it has revised it up by 2.7 percentage points
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