The IMF’s forecast for India is a big downward revision from its previous forecast in June.
New Delhi:
On a day when data on China’s growth was released, with its economy growing at 4.9% year-on-year in the third quarter, economists highlighted projections for other Asian economies. China recovered from the lockdowns caused by viruses and approached pre-pandemic levels, official data showed.
Bangladesh and China may lead the way to recovery, while India may be the worst performer in Asia, as projected by the International Monetary Fund (IMF) in terms of real Gross Domestic Product (GDP) for the full year.
India’s economy, severely affected by the coronavirus pandemic and forecast to contract by 10.3 percent this year, will fall below Bangladesh, Vietnam, China, Nepal, Pakistan and five other Asian economies, according to the IMF projections.
Kaushik Basu, former chief economic adviser to the Union Ministry of Finance, warned the government, along with a table of data: “Even a few years ago, no one could have imagined that India’s economy would be where it is. Part of this is owes Covid, but only part: see table. Lessons: Don’t deny the data. Mistakes happen: admit and take corrective action. Use the talent and experience available in the country, “the prominent economist tweeted today.
Even a few years ago, no one could have imagined that the Indian economy would be where it is. A part of this is caused by Covid, but only a part (see Table). Lessons: Don’t be into data denial. Mistakes happen: admit and take corrective action. Use the talent and experience available in the country. pic.twitter.com/5HbWgwufGW
– Kaushik Basu (@kaushikcbasu) October 19, 2020
However, India, Asia’s third-largest economy, is likely to rebound with an impressive growth rate of 8.8% in 2021, thereby regaining the position of the fastest-growing emerging economy, outpacing the growth rate. China’s projected 8.2%, the IMF said. .
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