In its current forecast, the International Monetary Fund expects the global gross domestic product to grow by six percent. It predicts the same economic growth as in April this year. However, the region of Southeast Asia will face a slight deterioration.
Emerging Asian economies will face the effects of a new wave of coronavirus epidemic, linked to the spread of the Indian (delta) variant of the SARS-CoV-2 virus, according to the International Monetary Fund. While in April the IMF forecasted GDP growth of 7.5 percent for the region this year, it now expects growth 1.1 percentage points lower.
“The growth outlook has deteriorated, especially in India, which has been battling the second wave of the epidemic between March and May. This has lowered expectations with regard to the economic recovery, “says the International Monetary Fund’s forecast. The IMF lowered its growth estimate for the Indian economy to 9.5 from 12.5 percent. The Chinese economy will grow 8.1 percent this year, while the IMF originally expected growth 0.3 percentage points stronger.
For next year, the IMF forecasts growth in emerging Asian economies of 6.4 percent, which is 0.4 percentage points better than in April.