IMF cuts India’s FY22 GDP forecast to 9.5%

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International Monetary Fund (IMF) on Tuesday cut India’s GDP forecast by 3 percentage points to 9.5% for this fiscal year.

In April, it had projected GDP growth of 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 .

However, despite the sharp cut in growth projection, it will still be higher than most other major economies.

China is expected to grow at 8.1%, while the US will likely to see 7% GDP growth during 2021.

The immediate priority is to deploy vaccines equitably worldwide, IMF said.