{"id":14121,"date":"2020-10-16T12:28:05","date_gmt":"2020-10-16T06:58:05","guid":{"rendered":"https:\/\/www.grainmart.in\/news\/?p=14121"},"modified":"2020-10-16T07:28:34","modified_gmt":"2020-10-16T01:58:34","slug":"imf-downgrades-indias-gdp-contraction-forecast-to-10-3","status":"publish","type":"post","link":"https:\/\/www.grainmart.in\/news\/imf-downgrades-indias-gdp-contraction-forecast-to-10-3\/","title":{"rendered":"IMF Downgrades India\u2019s GDP Contraction Forecast to 10.3%"},"content":{"rendered":"\n<p>India\u2019s per capita <a href=\"https:\/\/www.grainmart.in\/news\/indias-gdp-to-shrink-by-9-6-in-fy21-world-bank\/\">GDP<\/a> is set to slip below Bangladesh\u2019s in 2020. IMF downgrades India\u2019s GDP contraction further to 10.3%.<\/p>\n\n\n\n<h4 class=\"wp-block-heading\" id=\"h-imf-s-steep-revision\">IMF\u2019s Steep Revision<\/h4>\n\n\n\n<p>IMF in its World Economic Outlook October 2020 titled \u201cA Long and Difficult Ascent\u201d stated that India\u2019s GDP is expected to grow at -10.3% as against the earlier forecast of -4.5% in June 2020. The revisions have come amid the severe GDP contraction in the second quarter of this year than expected. However, it will rebound by 8.8% in 2021, surpassing <a href=\"https:\/\/www.grainmart.in\/news\/chinas-corn-imports-hit-record-high-and-are-estimated-to-touch-7-million-metric-tonnes\/\">China<\/a>\u2019s projected growth rate of 8.2%. India\u2019s GDP growth was at 4.2% in 2019. On the other hand, it expects the <a href=\"https:\/\/www.grainmart.in\/news\/global-economy-improved-after-fed-rate-cut-raghuram-rajan\/\">global economy<\/a> to contract by 4.4%. Besides, it projects America\u2019s economy to grow contract by 5.8% in 2020 and rebound by 3.9% in the next year. On the other hand, the Euro Area will contract by 8.3% this year and is expected to grow by 5.2% in 2021.<\/p>\n\n\n\n<h4 class=\"wp-block-heading\" id=\"h-india-s-per-capita-gdp-to-slip-below-of-bangladesh\">India\u2019s per Capita GDP to Slip Below of Bangladesh<\/h4>\n\n\n\n<p>IMF projects Bangladesh per capita GDP in dollar terms to grow to $1,888. It&#8217;s per capita GDP has grown at a compound annual growth rate of 9.1% as against India&#8217;s growth of 3.2%. Further, the country&#8217;s growing export sector and a consistent rise in the quality of savings and investments have helped it to bridge the economic gap with the neighbouring nation. Taking a jibe at the Centre on this bleak outlook, Congress leader Rahul Gandhi regarded this as BJP&#8217;s achievement in its 6-year term.<\/p>\n\n\n\n<h4 class=\"wp-block-heading\" id=\"h-pandemic-reversed-the-progress-made-in-reducing-poverty-since-the-1990s\">Pandemic Reversed the Progress Made in Reducing Poverty Since the 1990s<\/h4>\n\n\n\n<p>IMF has also projected that India might experience the most significant implications of global warming, considering the high temperatures. However, the forecast for the impact of <a href=\"https:\/\/www.grainmart.in\/news\/climate-change-will-lead-to-water-wars-across-the-world-and-disrupt-agriculture-sector\/\">climate change<\/a> on colder regions (Europe, North America) is somewhat less.<\/p>\n\n\n\n<p>The multilateral lending organization has warned that the<a href=\"https:\/\/www.who.int\/\"> pandemic<\/a> has reversed the progress made since the 1990s in reducing <a href=\"https:\/\/www.grainmart.in\/news\/the-pandemic-could-push-100-million-into-extreme-poverty\/\">poverty.<\/a> Further, it added that around 90 million people could fall below the $1.90 a day income threshold of extreme deprivation.<\/p>\n\n\n\n<p>Chief Economist, Gita Gopinath conveys that the cumulative loss in output is expected to grow from 11 trillion over 2020-21 to 28 trillion over 2020-25, which will give a setback to average living standards across all countries. Further, she added that there is a greater need for international cooperation and income support by governments to mitigate the impact of <a href=\"https:\/\/www.grainmart.in\/news\/coronavirus-covd-19-live-cases-tracker-john-hopkins\/\">COVID-19<\/a>.<\/p>\n\n\n\n<p>In all, the scaling of this calamity is highly uncertain and may run for long. Hence, the world will find it challenging to catch up to the pre-pandemic growth level fully.<\/p>\n","protected":false},"excerpt":{"rendered":"<p>India\u2019s per capita GDP is set to slip below Bangladesh\u2019s in 2020. IMF downgrades India\u2019s GDP contraction further to 10.3%.<\/p>\n","protected":false},"author":13,"featured_media":14131,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[5],"tags":[24110,1866,24112,120,192,11762,24113,24111,24108,23187,7705,19299,7943,1512,4013,13864,2523,4017,13050,14563,2878,24109],"yoast_head":"<!-- This site is optimized with the Yoast SEO plugin v24.5 - https:\/\/yoast.com\/wordpress\/plugins\/seo\/ -->\n<title>IMF Downgrades India\u2019s GDP Contraction Forecast to 10.3% - Grainmart News<\/title>\n<meta name=\"description\" content=\"India\u2019s per capita GDP is set to slip below Bangladesh\u2019s in 2020. 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