Indian economy to dip 10.3% in 2020; rebound with 8.8% growth in 2021: IMF

As COVID-19 pandemic has versely impacted world ecomy by causing a health crisis leing to an ecomic fallout on almost all countries across world, International Monetary Fund (IMF) projected  Indian ecomy to contract by a massive 10.8% this year as a result of pandemic. However, in a piece of good news, IMF in its report titled 'World Ecomic Outlook' also asserted that  Indian ecomy will bounce back to 8.8% growth next year and again become fastest-growing emerging ecomy in world, followed by China at 8.2%.

Reserve Bank of India (RBI) h earlier this month projected that GDP would contract by 9.5 per cent in current financial year amid disruptions caused by coronavirus pandemic and it may turn positive in last quarter.

World ecomy to dip by 4.4%

IMF also said global ecomic growth is estimated to dip by 4.4% in 2020, only to rebound with 5.2% growth in 2021. According to IMF report, vanced ecomies are expected to decline by 5.8% followed by a rebound in growth to 3.9% in 2021.  ecomic growth of developed countries such as US, Japan and UK is projected to shrink by 4.3%, 5.3% and 9.8% respectively.

"All emerging market and developing ecomy regions are expected to contract this year, including tably emerging Asia, where large ecomies, such as India and Indonesia, continue to try to bring pandemic under control," IMF said in its report which was released ahe of annual meeting of IMF and World Bank.

Looking at impact of ongoing coronavirus, IMF said that social distancing due to coronavirus pandemic will continue into 2021. report contended that local transmissions will fall everywhere by end of 2022.

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China, only ecomy in positive projection for 2020

China, from where catastrophic COVID-19 was originated and spre across world causing a health and ecomic crisis, remains only ecomy in world with positive growth projection in 2020. According to IMF report, China's projection in 2020 is 1.9% while all or countries in world including developed and developing have negative growth projections for current year.

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