Context: The IMF on Tuesday projected an impressive 11.5 per cent growth rate for India in 2021, making the country the only major economy of the world to register a double-digit growth this year amidst the coronavirus pandemic. The International Monetary Fund's growth projections for India in its latest World Economic Outlook Update released on Tuesday reflected a strong rebound in the economy, which is estimated to have contracted by eight per cent in 2020 due to the pandemic. Revising its figures, the IMF said that in 2020, the Indian economy is estimated to have contracted by eight per cent. China is the only major country which registered a positive growth rate of 2.3 per cent in 2020. India’s economy, the IMF said, is projected to grow by 6.8 per cent in 2022 and that of China by 5.6 per cent. With the latest projections, India regains the tag of the fastest developing economy of the world.

India centric highlights of the World Economic Outlook

• India is followed by China with 8.1 per cent growth in 2021 followed by Spain (5.9 per cent) and France (5.5 per cent).
• In 2020, the Indian economy is estimated to have contracted by eight per cent. China is the only major country which registered a positive growth rate of 2.3 %.
• India’s economy is projected to grow by 6.8 per cent in 2022 and that of China by 5.6 per cent.
• India regains the tag of the fastest developing economy of the world.
• Economic activities in India are now at par with the pre COVID phase.

Other Economies with High percentage of Growth

• China would grow 8.1% in 2021, followed by Spain (5.9%) and France (5.5 %).
• China, which was the only major country to register a growth rate of 2.3 % in 2020, will expand 5.6% in 2022.

Other findings of report

• The report highlighted the pandemic-induced acceleration in inequality by reiterating that close to 90 million people are likely to fall below the extreme poverty threshold during 2020-21 as workers with less education, women, youth, those in contact-intensive sectors, and those informally employed suffer disproportionate livelihood and income losses.
• The pandemic is expected to reverse the progress made in poverty reduction across the past two decades.
• It can be noted that recently, the Inequality Virus Report, released by Oxfam International, has also found that the Covid pandemic deeply increased the existing inequalities in India and around the world.

International Monetary Fund (IMF)

• IMF was created in 1945.
• It fosters global monetary cooperation, secure financial stability, facilitate international trade, promote high employment and sustainable economic growth, and reduce poverty around the world.

Its fundamental mission is to ensure the stability of the international monetary system through:

• Keeping track of the global economy and the economies of member countries.
• Lending to countries with balance of payments difficulties.
• Giving practical help to members.

Headquarters: Washington D.C.

• Member countries:190
• Other Reports by IMF are Global Financial Stability Report.