India’s GDP could rebound to 7.9% in 2021, says OECD

The Organization for Economic Co-operation and Development (OECD) predicted on Tuesday that the world economy will return to pre-pandemic growth levels by the end of next year, but slashed its 2021 forecast and warned that the recovery will be uneven across countries and downside risks persist.

From a contraction of 4.2% this year, global gross domestic product (GDP) is expected to bounce back to a growth pace of 4.2% in 2021, the 37-nation OECD said in a review of the global economic outlook. It reduced its growth forecast from 5% it had predicted in September. The pace of growth is expected to slow to 3.7% in 2022.

India is expected to rebound to grow 7.9% in 2021 after recording a contraction of 9.9% this year (2020-21 in its case) and expand 4.8% in 2022.

“For the first time since the pandemic began, there is now hope for a brighter future. Progress with vaccines and treatment have lifted expectations and uncertainty has receded. Thanks to unprecedented government and central bank action, global activity has rapidly recovered in many sectors.” OECD chief economist Laurence Boone wrote in the report.