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World Bank's GDP Contraction Forecast
Why is it in news?
- The World Bank expects India’s economy to contract by 9.6% in 2020-21.
- World Bank revised its earlier estimate in June that output will shrink by just 3.2% amidst the COVID-19 pandemic.
More from World Bank:
- The revision reflects the impact of the national lockdown and the income shock experienced by households and firms.
- There will be a rebound to 5.4% growth in 2021-22, based on the assumptions that the pandemic-related restrictions are completely lifted by 2022.
- The Bank mooted continuation of critical reforms to reverse the sudden and steep impacts of COVID-19.
Context:
- India’s gross domestic product (GDP) contracted 23.9% in the first quarter of this year.
- Official estimates for the second quarter are expected at end-November.