New York, May 11 (FN Bureau) The United Nations has raised India’s growth forecast for this year by 0.2 per cent to 7.5 per cent while terming the outlook as “highly fragile”. According to the World Economic Situation and Prospects (WESP) mid-2021 report, India’s Gross Domestic Product is expected to grow at 7.5 per cent in calendar year 2021 and at 10.1 per cent in 2022. This growth projection is higher by 0.2 per cent for this year and by 4.2 per cent for next year in comparison to WESP released in January this year. Last year, according to UN report, the country had seen a de-growth of 6.8 per cent.
“India has been particularly affected by a brutal second wave, which is overwhelming the public health system in large parts of the country. The country has expanded vaccine eligibility and is ramping up supply in every possible manner, but access to vaccines is unequal and insufficient to meet the massive demand. Given the fluid situation, India’s growth outlook in 2021 is highly fragile,” the report says. The world output projection for this year has been raised from 4.7 per cent to 5.4 per cent and from 3.4 per cent to 4.1 per cent for 2022. “Following a sharp contraction of 3.6 per cent in 2020, the global economy is now projected to expand by 5.4 per cent in 2021, reflecting an upward revision from the UN forecasts released in January,” the press release from UN said.
Amid rapid vaccinations and continued fiscal and monetary support measures, China and the United States – the two largest economies – are on the path to recovery. In contrast, the growth outlook in several countries in South Asia, sub-Saharan Africa, and Latin America and the Caribbean, remains fragile and uncertain. For many countries, economic output is only projected to return to pre-pandemic levels in 2022 or 2023, the release added.