The International Monetary Fund in its world economic outlook report on Tuesday predicted that the global economy will contract by 3% in 2020. It further predicted a 5-8% growth rate for 2021, when the economic activity stabilizes.
It projected a growth rate of 1.9% for India in Financial Year 2020-21 followed by China at 1.2%. For the next year, it predicted a growth rate of 7.2 % after China’s 9.2%
The forecast for the coming year is based on the assumption that the pandemic would end in the second half of this year.
Growth figures for the current FY suggest that India will be the fastest growing economy as other economies apart from China face contraction. However, it also suggests that China will be the fastest growing economy in 2021.
The Goldman’s forecast suggested India’s growth rate could be around 1.5%.
There are bunch of questions regarding the future of the businesses, the policy supports, whether the current RBI policies are sufficient enough to fuel the cash flows and the market conditions.
Unfortunately, there are no answers for these questions as of now. But if China could manage a Vshaped recovery, India too can hope for the same.
Team Mind Feed 
Jayaraj Shetty 
Gaurav Prabhu 
