IMF report highlights uneven recovery with emerging economies as losers
The epidemic has slowed India's economic recovery in the second wave, which was already slowed by the previous wave. To be true, the IMF is just now catching up to the rest of the private forecasts, and its 9.5 percent prediction is quite similar to the RBI's. The newest update from the International Monetary Fund (IMF) on its global economic outlook emphasises the precarious position of developing market economies. In terms of both the impact of the second wave and the response to mitigate it, there is a significant variation across nations in the developing market group. The IMF now expects emerging market and developing countries to expand at a rate of only 3.9 percent this year, down 0.4 percentage points from April's projection. Emerging and developing Asia will be affected the worst, with GDP projected to be 1.1 percentage points lower than previously forecast. The growth rate in India has been reduced by three percentage points to 9.5 percent. What is known is that the second wave's impact differed by country and was more severe in emerging economies. This is attributable to a variety of factors, including not just the quality of healthcare provided, but also the differing immunisation rates among countries. According to the IMF, approximately 40% of the population in industrialised economies has been vaccinated. Greater vaccination coverage makes it easier to expand into new areas of the economy, such as contact-intensive services, more quickly. Emerging market economies have been unable to do this. The IMF warns that the road to recovery for developing countries will be challenging in the future. One, the immunisation rate has failed to take up. As a result, the economic recovery has stopped or slowed, leaving employment and income prospects bleak.