IMF raises growth forecasts for India, Bangladesh, Maldives, Afghanistan and Nepal; downgrades Pakistan, Sri Lanka, Bhutan
India and Bangladesh are expected to grow respectively by 12.5 and 5 percent respectively in 2021, according to the latest GDP projections by the International Monetary Fund (IMF)
India and Bangladesh are expected to grow respectively by 12.5 and 5 percent respectively in 2021, according to the latest GDP projections by the International Monetary Fund (IMF). The global lender revised its growth projections upward for both countries. As countries continue to roll out vaccines, the report estimated that the South Asia region would grow by 7.5 percent in 2022.
However, the latest figures released by the global lender did not account for the emergence of renewed Covid-19 wave in South Asia. Cases of Covid-19 are rapidly growing in these countries, and it may also affect their growth projections in the future.
Earlier in its October forecast last year, the IMF had projected GDP 4.4 percent and 10 percent respectively for Bangladesh and India. On the other hand, Pakistan’s projected growth rate has been downgraded to just 1.4 percent this year, in contrast with the early estimated growth of 3 percent.
The growth projection for Sri Lanka was, too, downgraded to 4 percent, which was earlier projected to grow by 5.5 percent.
The report estimated Nepal to grow by 2.9 percent, Afghanistan by 4 percent, the Maldives by 18.9 percent. Last year, the Maldives’s economy contracted by around 30 percent.
However, Bhutan’s economy, the report says, will further contract by 1.9 percent this year.