Slowdown effects more pronounced in India: IMF
The new International Monetary Fund (IMF) chief Kristalina Georgieva warned that the global economy is witnessing ‘synchronised slowdown’ which will result in slower growth for 90% of the world this year.
The largest emerging market economies like India are experiencing an even more pronounced effect of the global downturn.
Despite this overall deceleration, close to 40 emerging market and developing economies are forecast to have real GDP growth rates above 5% — including 19 in sub-Saharan Africa.
The RBI also lowered India’s GDP growth estimate for the year to 6.1% from the earlier 6.9% due to the ongoing period of economic slowdown.
Possible steps to lessen the impact:
- More prudently, using monetary policy wisely and enhancing financial stability. Low-interest rates may give some policymakers additional money to spend.
- Structural reforms can raise productivity and generate enormous economic gains in medium and long runs in stressful economic situations.
International Monetary Fund:
It is an international organization headquartered in Washington, D.C., consisting of 189 countries working to foster global monetary cooperation.
World Economic Outlook by IMF to be released by mid-October would show downward revisions for 2019 and 2020.