The United Nations has raised India’s growth forecast to 7.5 percent for calendar year 2021, marking a 0.2 percent increase from its projection in January, but said the country’s outlook for the year remains highly fragile. As per the World Economic Situation and Prospects Report the surging Covid-19 infections and inadequate vaccination progress in many countries threaten a broad based recovery of the world economy. It also projected India’s GDP to grow by 10.1 percent in 2022.
The UN report said the country has expanded vaccine eligibility and is ramping up supply in every possible manner but access to vaccines is unequal and insufficient to meet the massive demand. The global economy is now projected to expand by 5.4 percent in 2021 following a sharp contraction of 3.6 percent in 2020, reflecting an upward revision from the UN forecasts released in January. Amid rapid vaccination and continued fiscal and monetary support measures, China and USA -the two largest economies are on the path of recovery. In contrast, the growth outlook in several countries in South Asia, sub- Saharan Africa, latin America and the Carribean remains fragile and uncertain.
For many countries, said the report, economic output is only projected to return to pre pandemic levels in 2022 or 2023. The report said,” Regional economic growth will return in 2021 at 6.9 percent against a 5.6 percent drop in 2020 but the recovery will be very uneven, and the scarring effects will run deep.”
