The world economy that was uniformly battered by the coronavirus pandemic in 2020 is experiencing diverging fortunes in 2021. Most advanced economies and some emerging economies are seeing a strong recovery, while the rest of the world, including India, has fallen behind. The second wave of the pandemic has hit India hard, with statewide lockdowns stalling economic activity. Though the wave seems to be declining, the rapid spread of the virus to the hinterlands has pushed economic recovery into uncharted territory. While higher commodity prices have also pushed up inflation, reducing household real incomes, input-cost pressures may push inflation outside of the policy target band, OECD said.

Source: Mint May 31, 2021 08:51 UTC