MF sharply lowered India's economic expectations! Facing the worst economic contraction in histo
- Author:Kyrie
- Source:Sunny
- Release Date:2020-10-17
In its latest report, the International Monetary Fund pointed out that among the emerging economies of the world, India’s economic forecasts have been revised to a particularly large extent, and the country’s GDP contraction in the second quarter was far greater than expected.
India will face the worst economic contraction in history
In the latest World Economic Outlook issued by the IMF, India’s economic growth expectations were further lowered, saying that the country is currently facing the largest contraction in major emerging markets after the new crown epidemic.
According to the report, India implemented large-scale isolation and blockade measures at the end of March this year, which suffered heavy losses due to businesses and employment.
The Indian economy experienced its worst contraction on record from April to June this year. India’s GDP contracted by 23.6% during this period, and it is predicted that India’s economic growth will shrink by 10.3% this fiscal year.
During this period, in addition to the 3.4% increase in agriculture, India's other industries including mining, manufacturing, power, and service industries have experienced worrying economic downturns. Since the implementation of the blockade, people have worried that 40% of the country’s restaurants will not survive the epidemic, the hotel and trade industries have fallen 47%, and the construction industry has fallen 50%.
The International Monetary Fund (IMF) pointed out that in order to promote economic growth, India not only needs to improve its fiscal stimulus, but also increase its fiscal stimulus.
Experts say that India’s economic growth rate is about negative 24%, and it has become the world’s fastest economic recession-this is India’s worst recession since independence. The country’s last economic downturn was in 1979-80, a decrease of 5.2%.
According to expert analysis, this has brought a great negative impact on the poverty alleviation of the Indian population and the creation of employment for young people. If all young people are to be recruited into the labor market, India must create at least 90 million non-agricultural jobs by 2030 and make up for the 19 million formal jobs that have disappeared due to the blockade.
In the post-epidemic era, the Indian economy must achieve a growth rate of at least 8-8.5% within 12 to 18 months to achieve this goal. The government must also adopt structural reforms in the medical and banking sectors, establish a more flexible labor market, increase social welfare, and improve the business environment.
Per capita GDP is not as good as Bangladesh, Modi was scolded by domestic opposition
In addition, according to data released by the International Monetary Fund, the per capita GDP of India’s neighboring Bangladesh in 2020 is expected to grow by 4%, reaching US$1,888, while the IMF’s forecast of India’s per capita GDP is US$1,877.
According to the forecast of the International Monetary Fund, India will become the third poorest country in South Asia, followed by Pakistan and Nepal. The per capita GDP of these two countries will be worse than that of India. The economic conditions of Bangladesh, Bhutan, Sri Lanka and Maldives in South Asia will all be better than that of India.
Faced with this appalling economic data, India’s main opposition leader Rahul Gandhi attacked the Modi government and the Bharatiya Janata Party, where Modi belongs.
India will face the worst economic contraction in history
In the latest World Economic Outlook issued by the IMF, India’s economic growth expectations were further lowered, saying that the country is currently facing the largest contraction in major emerging markets after the new crown epidemic.
According to the report, India implemented large-scale isolation and blockade measures at the end of March this year, which suffered heavy losses due to businesses and employment.
The Indian economy experienced its worst contraction on record from April to June this year. India’s GDP contracted by 23.6% during this period, and it is predicted that India’s economic growth will shrink by 10.3% this fiscal year.
During this period, in addition to the 3.4% increase in agriculture, India's other industries including mining, manufacturing, power, and service industries have experienced worrying economic downturns. Since the implementation of the blockade, people have worried that 40% of the country’s restaurants will not survive the epidemic, the hotel and trade industries have fallen 47%, and the construction industry has fallen 50%.
The International Monetary Fund (IMF) pointed out that in order to promote economic growth, India not only needs to improve its fiscal stimulus, but also increase its fiscal stimulus.
Experts say that India’s economic growth rate is about negative 24%, and it has become the world’s fastest economic recession-this is India’s worst recession since independence. The country’s last economic downturn was in 1979-80, a decrease of 5.2%.
According to expert analysis, this has brought a great negative impact on the poverty alleviation of the Indian population and the creation of employment for young people. If all young people are to be recruited into the labor market, India must create at least 90 million non-agricultural jobs by 2030 and make up for the 19 million formal jobs that have disappeared due to the blockade.
In the post-epidemic era, the Indian economy must achieve a growth rate of at least 8-8.5% within 12 to 18 months to achieve this goal. The government must also adopt structural reforms in the medical and banking sectors, establish a more flexible labor market, increase social welfare, and improve the business environment.
Per capita GDP is not as good as Bangladesh, Modi was scolded by domestic opposition
In addition, according to data released by the International Monetary Fund, the per capita GDP of India’s neighboring Bangladesh in 2020 is expected to grow by 4%, reaching US$1,888, while the IMF’s forecast of India’s per capita GDP is US$1,877.
According to the forecast of the International Monetary Fund, India will become the third poorest country in South Asia, followed by Pakistan and Nepal. The per capita GDP of these two countries will be worse than that of India. The economic conditions of Bangladesh, Bhutan, Sri Lanka and Maldives in South Asia will all be better than that of India.
Faced with this appalling economic data, India’s main opposition leader Rahul Gandhi attacked the Modi government and the Bharatiya Janata Party, where Modi belongs.