New Delhi, March 9: India’s gross domestic product (GDP) growth should come roaring back to life in 2021, according to the Organization for Economic Co-operation and Development (OECD) interim economic outlook. The OECD forecast India’s GDP to grow at 12.6 per cent FY22. COVID-19 Vaccines Help Inject Hope in World Economy: OECD Forecast.
If India grows at that level, it will make the country the fastest growing economy in the world, stealing the title back from China, which the OECD expects to grow at 7.8 per cent in FY22.
“The recovery in activity continued in the fourth (December) quarter of 2020, despite new virus outbreaks in many economies and tighter containment measures. Global output remained around 1% lower than prior to the pandemic, with marked variation in the pace of recovery across economies. The rebound has been relatively fast in several large emerging-market economies. Activity moved above pre-pandemic levels in China, India and Turkey, helped by strong fiscal and quasi-fiscal measures and a recovery in manufacturing and construction,” the OECD said in its interim economic outlook.
India and China are followed by the United States (6.5%), Turkey (5.9%), France (5.9%), Spain (5.7%), UK (5.1%), Indonesia (4.9%), Canada (4.7%), Mexico (4.5%), Italy (4.1%), Eurozone (3.9%) and Brazil (3.7%).
For the world economy, the OECD raised its expectation to 5.6% for 2021 and 4% next year. This is better from a December forecast of 4.3% growth in 2021 and 3.7% for 2022. The improvement is due to successful coronavirus vaccines and announcements of additional fiscal support in some nations.
(The above story first appeared on Fresh Headline on Mar 09, 2021 10:15 PM IST. For more news and updates on politics, world, sports, entertainment and lifestyle, log on to our website freshheadline.com).