New Delhi: The International Monetary Fund (IMF) on Tuesday revised India’s 20204 GDP outlook to 7 per cent from 6.8 per cent in April, citing “carryover from an upward revision to growth in 2023”, according to the World Economic Outlook report.
India and China will together account for over half of global growth in 20204, said IMF deputy MD Gita Gopinath in a post on social media platform X.
New WEO update: Growth in India & China will account for almost half of global growth in 2024. Growth in major advanced economies is more aligned: euro area growth picks up as the US shows signs of cooling after a strong year. Read here: https://t.co/LQe1ZD2sOR pic.twitter.com/IyjWgBFv68
— Gita Gopinath (@GitaGopinath) July 16, 2024
The upward revision also indicates improved prospects for private consumption, especially in rural areas, in India, said the IMF report.
The IMF stated in its report that 2 in 3 new entrants into the workforce will belong to India and sub-Saharan Africa, underlining these regions’ potential to contribute to global growth.
IMF outlook on Global Financial stability
The multilateral lender stated that global central banks continued to grapple with uncertainty, said the IMF report.
While advanced economies have suffered on account of uncertainty around the US real rates, leading to fluctuations in the US dollar, emerging economies have turned out to be more resilient, said IMF.
However, positive corporate sector performance has helped to maintain accommodative financial conditions, the IMF report added. Global disinflation continued to face speedbumps on account of uneven readings witnessed by the US and the rest of the world, according to the International Monetary Fund.
Near-term challenges
Slower disinflation could force central banks to maintain higher policy rates, which means higher loan rates, putting overall growth at risk.
Fiscal challenges remain with lower availability of funding opportunities driving up countries’ borrowing, said IMF’s chief economist Pierre-Olivier Gourinchas.
The IMF in its latest World EconomiC Outlook report revised India’s 20204 GDP growth forecast by 0.2 per cent to 7 per cent from its 6.8 per cent forecast in April 2024. Economy Business News – Personal Finance News, Share Market News, BSE/NSE News, Stock Exchange News Today
