Economy to grow at 11.5% in 2021, says IMF, revises contraction in 2020 to 8%

The International Monetary Fund on Tuesday projected an 11.5% growth rate for India’s economy in 2021, in its World Economic Outlook report for January. The body estimated that India’s economy contracted by 8% in 2020. The figure is a positive revision of its estimate in October 2020, when it had predicted that the growth rate will shrink by 10.3%.

The IMF report suggested that India will be the only major economy to register a double-digit growth this year, followed by China, which is expected to grow by 8.1% in 2021. However, China grew by 2.3% in 2020, according to the IMF data, making it the only major economy to record positive growth. China thus has a higher base for year-on-year GDP growth rate calculation.

In the report, IMF estimated a global contraction of 3.5% in 2020, an improvement of 0.9 percentage points from the 4.4% slump predicted in October, reflecting stronger-than-expected momentum in the second half of 2020. It predicted global growth of 5.5% in…

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