- The International Monetary Fund (IMF) published its annual report on October 15, 2021. In its report, it states that, India’s economy is gradually recovering after it was hit hard by two Covid-19 waves.
- IMF however cautioned the authorities against inflationary pressures.
- IMF also recommended a slow reduction in monetary policy support in the light that recovery is gaining ground.
- According to IMF, impact of Covid-19 on investment and human capital might prolong the recovery. It will also impact the medium-term growth.
- Recovery could be faster than expected considering the pace of vaccination and economic reforms.
- Thus, the economic outlook remains clouded due to pandemic-related uncertainties which is contributing towards downside and upside risks.
- Though India benefits from favourable demographics, disruption in access to education & training because of covid-19 pandemic could impact the improvements in human capital.
Tags:
Economics
