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IMF Cuts India’s Outlook Further as Economy Faces Worst EM Slump

  • India’s GDP set to contract 10.3% in fiscal year through March
  • IMF raises China’s economic growth forecast to 1.9% from 1%

India’s economic growth forecast was slashed further by the International Monetary Fund on Tuesday, with the South Asian nation now facing the biggest contraction of major emerging markets in the wake of the coronavirus pandemic.

Gross domestic product will shrink 10.3% in the fiscal year to March 2021, the Washington-based lender said in its World Economic Outlook, far worse than the 4.5% decline predicted in June. The 5.8 percentage-point downgrade was the biggest of the world’s main economies.