Syllabus Section: Economy

Why in news?

The International Monetary Fund, in its latest World Economic Outlook report, raised the global growth forecast for this year to 5.5 percent from 5.2 percent seen in October

Key highlights:

• The report highlights that India will witness the strongest growth among the main economies.

• India’s economy will expand by 11.5 percent in 2021 as opposed to the 8.8 percent growth that was predicted in October 2020.

• However, for the year 2022, the growth has been predicted to be 6.8 percent.

• The economic growth of the world is projected at 4.2 percent in 2022.

• It further estimated that there will be a 3.5 percent contraction in global growth in 2020.

• The latest forecast reflect expectations of a vaccine-powered strengthening of activity later in the year and additional policy support in a few large economies.

Further, access to medical interventions, the effectiveness of policy support, exposure to cross-country spillovers, and structural characteristics entering the crisis could lead to significant variations in the strength of the recovery across countries

World Economic Outlook (WEO)

This report is prepared by the International Monetary Fund. It analyses key parts of the IMF’s surveillance of economic developments and policies. The report is usually prepared twice a year.

Source: Buisness standard