IMF’s Asia Growth Forecast
The International Monetary Fund recently released its World Economic Outlook report. Under its report, IMF has downgraded the forecasts for the South East Asian economies. On the other hand, it has been more optimistic about Asia-Pacific and Global economies.
Key Findings of IMF
- According to the World Economic outlook report of IMF, the countries such as Malaysia, Indonesia, Thailand, Philippines and Vietnam are to grow by 4.9% in 2021. Previously IMF projected that these countries were to grow by 5.2%.
- Indonesia, Philippines and Malaysia are expected to tighten their restrictions as they are facing surge in COVID-19 cases.
- Only 3.76% of people in Indonesia have received COVID-19 vaccines. This is lower than the global level, which is, 5.76%.
- Around 1.8% of Malaysians and 0.96% of Philippines have received COVID-19 vaccine so far.
- IMF has increased the growth rate of countries bordering Indo-Pacific from 7.3% to 7.6%.
Predictions for China
According to IMF, China is to grow by 8.4% in 2021. Earlier, IMF had predicted that China will grow by 8.1%.
Predictions for India
According to IMF, India is to grow by 12.5% in 2021. Earlier, the international organisation had predicted that India will grow by 11.5%. However, the current COVID-19 wave in India might hinder its growth. This double mutant variety is bringing back lock down in several states of the country. India is now the second largest COVID-19 affected country in the world.
World Economic Outlook
The IMF has projected that the global economy is to grow by 5.5% in 2021 and 4.2% in 2022. The oil prices have increased by 20% in 2021 as compared to 2020 globally. Also, non-oil commodity prices are expected to increase, especially, in metals.
Apart from World Economic outlook, the IMF also generates Global Financial Stability Report.
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Month: Current Affairs - April, 2021