OECD ups GDP growth forecast to 12.6% in FY ’22

March 10, 2021 | 0 Comment

OECD has projected that the Indian economy will rebound to grow at 12.6% in FY22, the highest growth among G20 countries. This is expected to be assisted by additional fiscal support after the COVID-19 assisted recession.

“The recovery in activity continued in the fourth (December) quarter of 2020, despite new virus outbreaks in many economies and tighter containment measures. Global output remained around 1% lower than it was prior to the pandemic, with marked variation in the pace of recovery across economies,” OECD said in its interim economic outlook.

“The rebound has been relatively fast in several large emerging-market economies. Activity moved above pre-pandemic levels in China, India, and Turkey, helped by strong fiscal and quasi-fiscal measures and a recovery in manufacturing and construction,” it added.

Crisil has projected that the Indian economy will grow by 11% in 2021-22, but with differing trajectories in the first and second halves. It stated, “While the first half of the next fiscal will benefit optically because of the low-base effect, the second half would see a more broad-based pick-up in economic activity because of a commodity price lift, large-scale vaccinations and likely stronger global growth.”

OECD ups GDP growth forecast to 12.6% in FY ’22