OECD interim ‘Economic Outlook’

The Organisation for Economic Co-operation and Development (OECD) published its interim Economic Outlook on March 9, 2021. It has projected that the Indian economy will grow at the rate of 12.6% in Financial Year 2022. This will be the highest among G20 countries.

Highlights

The economic outlook is aided by the additional fiscal support after covid-19 pandemic pushed Indian economy into recession after almost 40 years. The report highlights that, recovery in activity continued in fourth quarter of 2020 despite there were new virus outbreaks and tighter containment norms in some economies. The Global output was around 1% lower than it was before the covid-19 pandemic.

Key Findings of the report

The report highlights that, several large emerging-market economies are rebounding relatively fast. Strong fiscal & quasi-fiscal measures, recovery in manufacturing & construction and several other activities have moved above the pre-pandemic levels in Turkey, China and India. These activities have helped these economies in recovering. OEC has projected India’s growth will be increased by 4.7 percent from 7.9% in December 2020. For the financial year 2021, the report estimated a contraction in economy by 7.4 percent as opposed to 8 percent contraction estimated by the Indian government.

Other reports on India’s growth

The rating agency Crisil Ltd has also projected that the Indian economy will grow at 11% in the Financial Year 2022. This growth will be driven by flattening of covid-19 affliction curve, vaccination programme and investment-focused government spending.

World Economic Outlook

Economic Outlook is the twice-yearly analysis, published by Organisation for Economic Co-operation and Development (OECD). It comprises of economic analysis and the forecasts for future economic performance of the member countries of OECD. The main version of the report is published in English however, it is also published in French and German languages. Apart from the economic outlook, OECD also publishes Monthly Economic Indicators to complement the Economic Outlook.

Organisation for Economic Co-operation and Development (OCDE)

It is an intergovernmental economic organisation comprising of 37 member countries. It was founded in the year 1961 to look after the economic progress and the world trade. It is also an official United Nations observer.

Month: Current Affairs - March, 2021