The International Monetary Fund (IMF) on Tuesday upgraded India’s economic growth forecast by 20 basis points (bps) to 7 per cent year-on-year for the current financial year 2024-25. In April, the international organisation had projected India’s economic growth at 6.8 per cent.
“The forecast for growth in India has been revised upward, to 7.0 per cent, this year, with the change reflecting carryover from upward revisions to growth in 2023 and improved prospects for private consumption, particularly in rural areas,” the IMF said in its latest World Economic Outlook.
The IMF pegs India’s gross domestic product (GDP) for FY26 at 6.5 per cent, the same projection as April.
In the financial year 2023-24, India’s GDP accelerated at an impressive pace of 8.2 per cent, higher than 7 per cent a year ago. This was on the back of a greater-than-expected expansion of 7.8 per cent in the fourth quarter.
IMF’s global growth projections are unchanged at 3.2 per cent for the calendar year 2024 and slightly higher at 3.3 per cent in 2025.
For China, the IMF has also revised upward the growth forecast to 5 per cent in 2024. “In 2025, GDP is projected to slow to 4.5 percent, and to continue to decelerate over the medium term to 3.3 percent by 2029, because of headwinds from aging and slowing productivity growth.”
On inflation, the IMF said the global inflation will continue to decline. In advanced economies, the revised forecast is for the pace of disinflation to slow in 2024 and 2025. “That is because inflation in prices for services is now expected to be more persistent and commodity prices higher.”
Comments
0 comment