After a contraction of 8%, expected growth of 12.5% for India: IMF

Averting divergent outcomes would mean “resolving the health crisis everywhere” the report says

After an estimated contraction of 8% in the fiscal year that ended March 31, India is projected to grow at 12.5 % during the current year, settling down to 6.9% growth year (FY22/23), according to the World Economic Outlook (WEO): Managing Divergent Recoveries, released by the IMF as the World Bank IMF Spring Meetings kick off virtually. After an estimated contraction of 3.3% in 2020 (calendar year), the global economy is expected to grow 6% this year and 4.4% next year, although there are significant divergences within and between countries. Projections for 2021 are slightly higher than they were in October 2020 due to fiscal support in some large economies and vaccine-supported recovery. The U.S.’s 1.3 percentage point forecast upgrade, especially, contributed to this, resulting in U.S. growth projections of 6.4% and 3.5% this calendar year and next. The U.S. GDP level in 2022 is forecast to be higher than in a non-pandemic scenario — the only large economy for which this is true. Other economies are also expected to rebound this year albeit at a slower rate, as per the IMF. The Euro Area is projected to grow at 4.4% and 3.8% over these time periods; China, at 8.4% and 5.6%.