New York, May 11: The United Nations has raised India’s growth forecast for this year by 0.2 percent to 7.5 percent 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 percent in the calendar year 2021 and at 10.1 percent in 2022.
This growth projection is higher by 0.2 percent for this year and by 4.2 percent for next year in comparison to WESP released in January this year. Last year, according to a UN report, the country had seen a de-growth of 6.8 percent.
“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 percent to 5.4 percent and from 3.4 percent to 4.1 percent for 2022. “Following a sharp contraction of 3.6 percent in 2020, the global economy is now projected to expand by 5.4 percent 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. (uni)