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Indian economy to grow at 9.5% this year, 8.5% in 2022: IMF

YB WEB DESK. Dated: 10/13/2021 2:18:59 PM

Washington, Oct 12 "The outlook for the lowincome developing country group has darkened considerably due to worsening pandemic dynamics. The downgrade also reflects more difficult near-term prospects for the advanced economy group, in part due to supply disruptions,” she said. "Partially offsetting these changes, projections for some commodity exporters have been upgraded on the back of rising commodity prices. Pandemic-related disruptions to contact-intensive sectors have caused the labour market recovery to significantly lag the output recovery in most countries,” the Indian- American economist added. Observing that the dangerous divergence in economic prospects across countries remains a major concern, she said aggregate output for the advanced economy group is expected to regain its pre-pandemic trend path in 2022 and exceed it by 0.9 per cent in 2024. "By contrast, aggregate output for the emerging market and developing economy group (excluding China) is expected to remain 5.5 per cent below the pre-pandemic forecast in 2024, resulting in a larger setback to improvements in their living standards,” she added. Noting that a principal common factor behind these complex challenges is the continued grip of the pandemic on global society, Gopinath said that the foremost policy priority is therefore to vaccinate at least 40 per cent of the population in every country by end- 2021 and 70 per cent by mid-2022. "This will require highincome countries to fulfill existing vaccine dose donation pledges, coordinate with manufacture.