IMF Says Farm Bills Have Potential To Represent A Significant Step Forward For Agricultural Reforms In India
The International Monetary Fund (IMF) on Tuesday upgraded its FY22 growth projection for India to 12.5% from 11.5% estimated in January. However, the global lender cautioned that the forecast hasn't factored in the severe downside risks arising from the country's ongoing second wave of covid-19. The world economy is set to grow 6.0 percent this year and 4.4 percent next year, IMF said. The global lender raised the global growth forecasts amid high uncertainty and warned of divergent impacts from the Covid-19 pandemic such as sharply rising income inequality.
In a January update to the WEO, the IMF had projected growth of 5.5 percent and 4.2 percent, respectively. The latest projections were also stronger than those in the October WEO report. The upgrade reflects the additional fiscal support in a few large economies and the anticipated vaccine-powered recovery in the second half of the year, the lender said. The global economy contracted an estimated 3.3 percent in 2020 as the coronavirus pandemic savaged economic activity across the world.
Unprecedented policy response in the form of monetary and fiscal stimulus likely made the Covid-19 recession less severe than the 2008 global financial crisis, the report said. The collapse would have been three times worse without the swift support. However, the IMF warned of severe divergent impacts from the pandemic. The report said income inequality is set to increase significantly because of the pandemic and unequal setbacks in schooling compound the problem.
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