The International Monetary Fund (IMF) in its latest edition of the World Economy report has projected a Gross Domestic Product (GDP) growth of 1.9 per cent for India in 2020, as the global economy hits the worst recession since the Great Depression in the 1930s due to the raging coronavirus pandemic that has nearly stalled all economic activities across the world. With this subdued forecast, India may record its worst growth performance since the 1991 liberalisation.
However, it has placed India as the fastest-growing emerging economies of the world. It is among the only two major countries, which will register a positive growth rate in 2020. The other being China, for which the IMF has projected a growth rate of 1.2 per cent. Further, it said in the advanced economy group, are forecast to contract this year, including the United States (-5.9 per cent), Japan (-5.2 per cent), the United Kingdom (-6.5 per cent), Germany (-7.0 per cent), France (-7.2 per cent), Italy (-9.1 per cent), and Spain (-8.0 per cent).
Besides, it stated that India’s growth rate in 2021 is projected at 7.4 per cent, while that of China at 9.2 per cent. The United States has been projected to grow at 4.5 per cent and Japan 3 per cent. This is a truly global crisis as no country is spared. Countries reliant on tourism, travel, hospitality, and entertainment for their growth are experiencing particularly large disruptions.
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