Washington: The World Bank on Tuesday projected India’s economy to grow at 8.3% in 2021 and 7.5% in 2022, even as its recovery is being hampered by an unprecedented second wave of the Covid, the largest outbreak in the world since the beginning of the deadly pandemic.
The Washington-based global lender, in its latest issue of Global Economic Prospects released here, noted that in India, an enormous second Covid wave is undermining the sharper-than-expected rebound in activity seen during the second half of fiscal year 2020/21, especially in services.
“India’s recovery is being hampered by the largest outbreak of any country since the beginning of the pandemic,” the World Bank said. In 2020, India’s economy is estimated to have contracted by 7.3% while in 2019, it registered a growth rate of 4%, the World Bank said, adding that in 2023, India is expected to grow at 6.5%.
In its report, the Bank said the global economy is set to expand by 5.6% in 2021 — its strongest post-recession pace in 80 years. “For India, GDP in fiscal year 2021/22 starting from April 2021 is expected to expand 8.3%,” it said.
The global economy is expected to expand 5.6% in 2021, the fastest post-recession pace in 80 years, largely on strong rebounds from a few major economies. However, many emerging market and developing economies continue to struggle with the COVID-19 pandemic and its aftermath, the World Bank says. Despite the recovery, global output will be about 2% below pre-pandemic projections by the end of this year. Per capita income losses will not be unwound by 2022 for about two-thirds of emerging market and developing economies. Among low-income economies, where vaccination has lagged, the effects of the pandemic have reversed poverty reduction gains and aggravated insecurity and other long-standing challenges.
Among major economies, U.S. growth is projected to reach 6.8% this year, reflecting large-scale fiscal support and the easing of pandemic restrictions. Growth in other advanced economies is also firming, but to a lesser extent. Among emerging markets and developing economies, China is anticipated to rebound to 8.5% this year, reflecting the release of pent-up demand.
Emerging market and developing economies as a group are forecast to expand 6% this year, supported by higher demand and elevated commodity prices. However, the recovery in many countries is being held back by a resurgence of COVID-19 cases and lagging vaccination progress, as well as the withdrawal of policy support in some instances. Excluding China, the rebound in this group of countries is anticipated to be a more modest 4.4%. The recovery among emerging market and developing economies is forecast to moderate to 4.7% in 2022. AGENCIES
