NEWS DESK
The International Monetary Fund (IMF) sharply cut its 2021-22 economic growth forecast for India by 300 basis points to 9.5% as Asia’s third-largest economy’s recovery has been set back severely following the second COVID-19 wave during March–May.
In its April review, the multilateral agency had pegged India’s economic growth for FY22 at 12.5%.
“Growth prospects in India have been downgraded following the severe second COVID wave during March–May and expected slow recovery in confidence from that setback,” the fund said in a statement on Tuesday.
India was hit badly by the second wave of coronavirus that overwhelmed the healthcare system and led to acute shortage of essential medicines, beds and oxygen supplies. The delta variant that led to a massive crisis in India has now spread to various parts of the world as well triggering fresh worries.
The fund maintained its 6% global growth outlook supported by improved outlook for the United States, Morocco, Latin America and Caribbean.