IMF growth Prospects for India: Key Facts
The World Economic Outlook of the International Monetary Fund (IMF) has given the following prospects about the growth trends for India:
- IMF has retained its growth projection for the country at 7.5 per cent for 2019-20 and said it is likely to accelerate to 7.7 per cent in 2020-21. This brings cheers for India as the world growth rates have been revised downwards.
- India will remain the fastest-growing economy in the world, at least for the next two years.
- India’s growth rate is poised to pick up in 2019, benefiting from low oil prices and a slower pace of monetary tightening than previously expected as inflation pressures ease.
The projection by IMF is higher than the Central Statistics Office’s (CSO) estimate of 7.2 per cent and lower than the RBI’s estimate of 7.4 per cent. IMF’s estimates are in line with the World Bank’s estimate of 7.3 per cent.
China’s GDP growth on the decline
The GDP figures from China shows that it recorded its lowest growth rate in 28 years at 6.6 per cent in 2018. IMF had estimated growth rate of 6.6 per cent in 2018 and 6.2 per cent in 2019 and 2020. As a result, India is poised to be the fastest-growing economy in the world, at least for the next two years.