The International Monetary Fund (IMF) in its latest report has projected an impressive 12.5 percent growth rate for India in 2021, stronger than that of China, the only major economy to have a positive growth rate last year during the COVID-19 pandemic. It also said the Indian economy is expected to grow by 6.9 percent in 2022. Notably in 2020, India's economy contracted by a record eight percent.
According to the report, China, on the other hand which was the only major economy to have a positive growth rate of 2.3 per cent in 2020, is expected to grow by 8.6 per cent in 2021 and 5.6 per cent in 2022. After an estimated contraction of 3.3 per cent in 2020, the global economy is projected to grow at 6 per cent in 2021, moderating to 4.4 per cent in 2022. In 2020, the global economy contracted by 3.3 per cent.
Nonetheless, it said the outlook presents daunting challenges related to divergences in the speed of recovery both across and within countries and the potential for persistent economic damage from the crisis.
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