IMF projects India's 2024 growth at 6.8%, remains fastest-growing major economy
IMF raises India's growth forecast to 6.8 per cent, citing strong domestic demand and young workforce.
The International Monetary Fund (IMF) on Tuesday revised India's growth forecast to 6.8 per cent from the previous 6.5 per cent. India maintains its position as the fastest-growing among the world's major economies, outpacing China, which is projected to grow at 4.6 per cent during the same period.
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The latest edition of the World Economic Outlook released by the IMF ahead of the annual spring meetings of the IMF and the World Bank attributed the growth of India to robust domestic demand and a growing working-age population.
IMF predicts global growth at 3.2%
The IMF has upgraded its global economic outlook, anticipating a “soft landing” characterised by controlled inflation and steady growth.
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Predicting a worldwide expansion of 3.2 per cent for 2024, up from the previously forecasted 3.1 per cent, the IMF anticipates growth matching that of 2023. This optimistic projection extends into 2025, with an expected third consecutive year of 3.2 per cent growth. Notably, the IMF attributes much of this expansion to robust growth in the United States, forecasting a 2.7 per cent increase for 2024, up from the earlier 2.1 per cent prediction.
Despite lingering concerns about inflation, the IMF predicts a decline from 6.8 per cent in 2023 to 5.9 per cent in 2024 and further to 4.5 per cent in 2025 globally, with advanced economies experiencing a similar downward trend due to higher interest rates.
IMF forecast for Asia
Meanwhile, growth in emerging and developing Asia is forecasted to decline from an estimated 5.6 per cent in 2023 to 5.2 per cent in 2024 and further to 4.9 per cent in 2025. This represents a minor upward adjustment compared to the January 2024 WEO Update.
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"Growth in China is projected to slow from 5.2 per cent in 2023 to 4.6 per cent in 2024 and 4.1 per cent in 2025, as the positive effects of one-off factors –– including the post-pandemic boost to consumption and fiscal stimulus –– ease and weakness in the property sector persists," the IMF said.
(This is a developing story. Please get back to check for updates.)