India's GDP is expected to fall to 1.9 per cent in FY21 as against 5.8 per cent estimated in January amid the ongoing lockdown due to coronavirus pandemic, a global report said. The Indian economy may grow at 4.2 per cent in FY20 as against 5 per cent estimated by the statistics department, the International Monetary Fund (IMF) also said in its bi-annual World Economic Outlook. However, India is the only country other than China to register a positive growth rate in 2020, it added.
Global growth will see its worst recession this year since the Great Depression in the 1930s, the IMF also said, adding that partial recovery is expected in 2021. "A partial recovery is projected for 2021, with above trend growth rates, but the level of GDP will remain below the pre-virus trend, with
considerable uncertainty about the strength of the rebound," Gita Gopinath, the IMF's chief economist, said.
In January, the IMF had estimated 3.4 per cent growth for global GDP in 2021. The global economy is likely to fall sharply by 3 per cent in 2020, much worse than during the FY09 financial crisis. However, India may see a sharp economic recovery in FY22 at 7.4 per cent, it added. Meanwhile, foreign brokerage Barclays cut India's calendar year (CY) 2020 GDP forecast to zero per cent from 2.5 per cent earlier and 0.8 per cent for the financial year 2020-21 from 3.5 per cent earlier. The brokerage has also lowered its CY21 GDP growth forecast to 7.5 per
cent from 8 per cent, previously.