IMF lowers India’s growth forecast to 6.9% for 2012
The IMF (International Monetary Fund) lowered India’s growth forecast to 6.9% for this year. The lowered growth outlook in 2012 owes much to a slowdown of investment which partly reflects structural factors IMF called for renewed efforts to revive the flagging structural reform agenda. It also pointed out that domestic factors too have played a role in India’s growth slowdown over the second half of 2011. However, the IMF has retained India’s growth estimate at 7.3% for 2013. As per the IMF, the national economy grew by 7.1% last year.
Emphasising that economic rebalancing remains a policy priority for much of Asia, the IMF said the best way for the region to protect itself against external shocks is by strengthening domestic sources of growth.