World Economic Outlook Update

On January 26, the World Economic Outlook Update has been released by the International Monetary Fund. The update has projected good growth for India.

Key Points

• The World Economic Outlook Update has projected a strong rebound in India’s growth.
• As per the update, the growth rate for India will be 11.5% in 2021.
• This projection also makes India the only major economy to see a double-digit growth rate in 2021.
• The next major economy after India is China which is projected to have a growth rate of 8.1% in 2021.
• China will be followed by Spain with a growth rate of 5.9% and France with a growth rate of 5.5%.
• Indian economy is estimated to grow at the rate of 6.8% in 2022. China’s growth rate in 2022 is estimated at 5.6%.
• Indian economy contracted by 8% due to the COVID-19 pandemic in 2020.
• China is the only major economy that saw a positive growth rate of 2.3% in 2020.

IMF

International Monetary Fund (IMF) is an international financial institution established in the year 1945. It is headquartered in Washington, D.C. At present, IMF has 190 member countries. The main aim of IMF is to facilitate international trade, promote international monetary co-operation, foster sustainable economic growth, make resources available to members experiencing balance of payments difficulties, reduce poverty globally, prevent and assist with recovery from international financial crises.