OECD raises prospects for global economy, scales them down for India

Finds scope of further monetary and fiscal stimulus limited in the country

The Organization for Economic Co-operation and Development (OECD) on Wednesday said it expects India’s economy to shrink 10.2 per cent in the current financial year (FY21) against its earlier estimate of 3.7-7.3 per cent, owing to extended lockdowns to contain the spread of the Covid-19 pandemic.
 

However, the Paris-based institution expects the world economy to fare better, with a 4.5 per cent fall in 2020, against its earlier prediction of 6 per cent.
 

In its latest economic outlook, the OECD attributed its decision on India to “the prolonged spread of the virus, high levels of poverty and informality, and stricter