IMF predicts 5.3% growth recovery for Sri Lanka in 2021 | Daily News

IMF predicts 5.3% growth recovery for Sri Lanka in 2021

The International Monetary Fund (IMF) says Sri Lanka’s expected gross domestic product could shrink 4.6% for 2020, up from 0.5% predicted earlier, though it expects the global economy to fare better.

However, the IMF says growth would recover to 5.3% in 2021.

Global growth is projected at −4.4% in 2020, a less severe contraction than (WEO) Update. The revision reflects better-than anticipated second quarter GDP out turns, mostly in advanced economies, where activity began to improve sooner than expected after lock downs were scaled back in May and June, as well as indicators of a stronger recovery in the third quarter.

India would shrink 10.3%, Maldives 18.7% while Bangladesh would grow one of the fastest rates in the world amid a Covid-19 crisis, the IMF said.

Global growth is projected at 5.2% in 2021, a little lower than in the June 2020 WEO Update, reflecting the more moderate downturn projected for 2020 and consistent with expectations of persistent social distancing. Following the contraction in 2020 and recovery in 2021, the level of global GDP in 2021 is expected to be a modest 0.6% above that of 2019.

The growth projections imply wide negative output gaps and elevated unemployment rates this year and in 2021 across both advanced and emerging market economies. After the rebound in 2021, global growth is expected to gradually slow to about 3.5% into the medium term.

This implies only limited progress toward catching up to the path of economic activity for 2020–25 projected before the pandemic for both advanced and emerging market and developing economies.