Covid 3rd wave may pull GDP growth down to 7%: Economist Abhijit Banerjee

Banerjee said that boosting state's economy will directly revive the country's economy

Abhijit Vinayak Banerjee who is the Nobel laureate economist said that the third wave of the COVID-19 pandemic which might adversely impact the GDP and its growth rate might go down to 7 percent.He said that boosting state's economy is directly related to the revival of the national economy as stress created due to the ongoing pandemic crisis.


International Monetary Fund (IMF) cuts down the economic growth for India that was forecasted earlier in July to 9.5 percent for the current fiscal year as the onset of a severe second wave of pandemic had interrupted into recovery momentum.


IMF forecasted 12.5 percent growth in GDP for 2021-22 which is lower than estimation in April before the second wave pandemic took a grip. For the next fiscal year, IMF forecasted economic growth of 8.5 percent which is higher than the 6.9 percent it had projected in April.


"If the country's economy does not improve, Bengal alone will not be able to do anything. If the economy of the whole country is active, it will have an impact," said Banerjee who heads West Bengal's Global Advisory Board (GAB).


He also said, "Many Bengalis work in other states. A lot of income comes from migrants. We cannot solve this problem alone." He said that state government is trying to help but the issue will be solved only after the revival of the country's economy.


The noble laureate economist said that centre should be more into free-spending policies like other economies of Europe and the US rather being concerned about balancing the deficit and the budget.

 

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