The IMF attributed the slightly less dire forecast to faster-than-expected rebounds in some countries, notably China, and to government rescue aid that was enacted by the United States and other major industrial countries.
In the report, the World bank said the spread of the virus and containment measures have severely disrupted supply and demand conditions in India.
The growth projections imply wide negative output gaps and elevated unemployment rates this year and in 2021 across both advanced and emerging market economies, it added.
China, the world's second-largest economy, is expected to grow 1.9% this year, a sharp slowdown from the 6.1% gain in 2019, and then expand 8.2% in 2021.
The IMF on Tuesday predicted a deep global recession this year and the world growth to be - 4.4 per cent, asserting that the global economic crisis is far from over mainly due to the impact of the coronavirus pandemic.
Concerning global financial stability, the report said that near-term risks have been contained so far, as the unprecedented and timely policy response has contributed to maintaining the flow of credit to the economy and avoiding adverse macro-financial feedback loops, which is actually creating bridges to recovery.
"India's GDP is expected to contract 9.6 per cent in the fiscal year that started in March", the World Bank said in its latest issue of the South Asia Economic Focus report. Global growth is projected to be -4.4 percent, an upward revision of 0.8 percentage points compared to our June update. We are upgrading our forecast for advanced economies for 2020 to -5.8 percent, followed by a rebound in growth to 3.9 per cent in 2021.
Previously in June quarter (Q2), India's GDP plunged below what was projected by International Monetary Fund due to sharp compression in consumption and a collapse in investment.
On the emerging markets side, financing needs have increased sharply because of the crisis, which has imposed financial challenges that are likely to push some of these economies into debt distress or cause financial instability that could need an official support, said the report. "While the global economy is coming back, the ascent will likely be long, uneven and uncertain".
The coronavirus crisis will wreak "lasting damage" on people's living standards across the world and taxes on the rich and on companies may have to rise to address this economic harm, the International Monetary Fund has warned. We are projecting GDP growth to contract by around 5 percent, 5.4 percent if I remember correctly, in Nigeria this year.
The IMF said on Tuesday said that as many as 90 million people could be plunged beneath into extreme poverty this year, meaning they will be forced to survive on less than $1.90 a day.