In 2020-21, Global GDP will shrink, unemployment rate to worsen

WASHINGTON: The global economic crisis will not be quite as grim as feared this year, but GDP will still contract by 4.4 percent and the ongoing pandemic means the outlook remains uncertain, the IMF chief economist Gita Gopinath released a report ahead of the annual meetings of the IMF and World Bank. In the United States, the economy is now expected to decline 4.3 percent this year, and post growth of 3.9 percent in 2021. China, where the virus originated, has recovered faster and will see growth of 1.9 percent this year, accelerating to 8.2 percent next year, according to the report. However, Gopinath said that if China is excluded, global growth next year would be negative. While most countries will see their economies return to pre-pandemic levels by 2022, some like those in Latin America will not see a recovery until 2023, she told reporters.
Indian economy will bounce back in 2021-’22 with a growth rate of around 6%. But this is 1.4% lower than the projection the World Economic Outlook made in April.

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