IMF projects India's GDP at- 4.5% in FY21

WHAT IMF SAYS?

The COVID-19 pandemic has had a more 

negative impact on activity in the first half of 2020 than anticipated.

Also the recovery is projected to be more gradual than previously forecast.

The adverse impact on low-income households is particularly acute,

Imperiling the significant progress made in reducing extreme poverty in the world since the 1990s.

ROAD TO RECOVERY

In countries where activities are being severely constrained by the health crisis,

People directly impacted should receive income support through unemployment insurance, wage subsidies, and cash 

transfers, and impacted firms should be supported via tax deferrals, loans, credit guarantees, and grants.

In countries that have begun reopening and the recovery is underway,

Policy support will need to gradually shift toward encouraging people to return to work, and to facilitating a reallocation of workers to sectors with growing demand and away from shrinking sectors.

CONCLUSION

Strong multilateral cooperation remains 

essential on multiple fronts.

Liquidity assistance is urgently needed for 

countries confronting health crises and 

external funding shortfalls.

Beyond the pandemic,

Policymakers must cooperate to resolve trade and technology tensions that endanger an eventual recovery from the COVID-19 crisis.