World Economy In Deep Depression In 2020; Growth To Be -4.4% Says IMF; India Set To Drop Below Bangladesh In 2020 Per Capita GDP; Centre Hits Back At Rahul Gandhi over ‘Bangladesh Set To Overtake Jibe

  • 3 years ago
On October 13, IMF predicted a deep global recession this year and the world growth to be - 4.4 per cent, asserting that the global economic crisis is far from over mainly due to the impact of the coronavirus pandemic. In its latest World Economic Outlook report, the International Monetary Fund also said the swift recovery in China has surprised on the upside while the global economy's long ascent back to pre-pandemic levels of activity remains prone to setbacks. This upgrade owes to somewhat less dire outcomes in the second quarter, as well as signs of a stronger recovery in the third quarter, offset partly by downgrades in some emerging and developing economies. According to the report, in 2021, growth is projected to rebound to 5.2 per cent, -0.2 percentage points below its June projection. Meanwhile, India is set to drop below Bangladesh in terms of per capita Gross Domestic Product (GDP) as the economy, according to the International Monetary Fund; is projected to contract by a massive 10.3 per cent this year. According to the IMF's ''World Economic Outlook'' report, India's per capita GDP is set to plunge to $1,877 this fiscal year ending on March 31, 2021. Bangladesh per capita GDP in dollar terms is expected to grow to $1,888, according to the IMF report. However, India, Asia's third-largest economy, is likely to bounce back with an impressive 8.8 per cent growth rate in 2021, thus regaining the position of the fastest growing emerging economy, surpassing China's projected growth rate of 8.2 per cent, the IMF said. Top Congress leader Rahul Gandhi, who has been critical of the centre over the state of the economy, hit out at the government after the IMF projections. India's projected slump is the largest of any major economy except for Italy and Spain, and the biggest among the main emerging markets. Among the other countries in the BRICS group, Brazil's economy will contract 5.8 per cent, Russia 4.1 per cent, South Africa 8.0 per cent while China will grow 1.9 per cent, according to the IMF's report.