Indian Economy to Fall by 4.5% this Year due to Corona Crisis- IMF

The IMF also estimates that in 2021-22, the country will return to the fast track again and may see a strong economic growth of 6 percent that year
Indian Economy to Fall by 4.5% this Year due to Corona Crisis- IMF
Image Credit: DNA India

GLOBAL ECONOMY MAY GROW BY 5.4 PERCENT IN NEXT FINANCIAL YEAR

The International Monetary Fund (IMF) has said that India's gross domestic product (GDP) could fall by 4.5 percent due to the Corona crisis in this financial year i.e. 2020-21. The IMF says that the coronavirus's impact on the economy in the first half is more severe than expected. The IMF has forecast a 4.9 percent drop in the global growth rate in the year 2020. The IMF said that the global economy may grow by 5.4 per cent in the next financial year. This is 0.4 percent more than its earlier estimate.

Image Credit: New Digest Nigeria
Image Credit: New Digest Nigeria

The IMF said in its World Economic Outlook update released on Wednesday in June 2020, "The Indian economy may decline by 4.5 percent due to prolonged lockdown and slower recovery than expected in April." The International Monetary Fund (IMF) said that the Indian economy may decline by 4.5 percent in 2020 and it will be a historic decline. It has said that due to the coronavirus epidemic and its prevention measures, most of the economic activity are expected to fall due to such a huge decline.

Image Credit: YourStory
Image Credit: YourStory

BY 2021-2022 ECONOMY WILL GROW BY 7.4 PERCENT

The IMF also estimates that in 2021-22, the country will return to the fast track again and may see a strong economic growth of 6 percent that year. However, it has cut the estimate. The IMF had earlier said that the Indian economy will grow by 7.4 percent in FY 2021-22. Similarly, IMF had earlier predicted that the Indian economy will grow by 1.9 per cent in 2020-21.

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