What is it?
- The World Economic Outlook (WEO) is an International Monetary Fund’s report that provides analysis and forecasts of economic developments and policies in its member countries.
- The report encapsulates the state of the global economy and highlights risks and uncertainty that threaten growth.
- It is usually published twice a year.
Why in News?
- The International Monetary Fund (IMF) has released its latest World Economic Outlook.
Highlights of the Report
- The IMF has cut its economic growth forecast for India to 9.5% for the 2021-22 fiscal year as the onset of a severe second COVID-19 wave cut into recovery momentum.
- This forecast for 2021-22 is lower than the 12.5% growth in GDP that IMF had projected in April before the second wave took a grip.
- For 2022-23, IMF expects economic growth of 8.5%, larger than the 6.9% it had projected in April.
- India’s economy is gradually recovering from a deep contraction in the fiscal year ended March 31, 2021 (7.3%) and a subsequent severe second wave of COVID-19.
- The GDP, which shrank from $2.87 trillion in 2019-20 to $2.66 trillion in the following year, is estimated to reach around $4 trillion in 2024-25.
- Overall, the global economy is projected to grow 6 % in 2021 and 4.9 % in 2022.
- The International Monetary Fund was conceived in 1944 at the United Nations Bretton Woods Conference in New Hampshire, United States.
- The IMF and the World Bank are called Bretton Woods twins.
- The IMF is a permanent observer at the UN.
- It is an organization of 190 countries. India is a founder member of the IMF.
- The mandate of the IMF as follows:
- To promote international monetary cooperation;
- To facilitate the expansion and balanced growth of international trade;
- To promote exchange stability;
- To assist member countries in correcting maladjustments in their balance of payments without resorting to measures destructive of national or international prosperity;
- To assist in the elimination of foreign exchange restrictions which hamper the growth of world trade.