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IMF Raises India’s GDP Growth Forecast, Check Data Here


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The International Monetary Fund (IMF) has revised India’s GDP growth forecast for the fiscal year 2025 (FY25) by 30 basis points (bps) to 6.8%. This is an increase from its previous forecast of 6.5% in January. The revision is attributed to strong domestic demand conditions and a rising working-age population in India. This makes India the fastest-growing economy in the world, surpassing China’s growth projection of 4.6% for the same period. The IMF also projects India’s GDP growth for FY26 at 6.5%. Additionally, the IMF expects retail inflation in India to be 4.6% in FY25 and 4.2% in FY26.

IMF India GDP

  • 2024 Projected Real GDP (% Change) : 6.8
  • 2024 Projected Consumer Prices (% Change): 4.6
  • Special Drawing Rights (SDR): 13694.24 million
  • Quota (SDR): 13114.4 million

Global Economic Outlook

According to the IMF’s World Economic Outlook report released ahead of the annual spring meetings of the IMF and the World Bank, the global economy is expected to experience slow but steady growth. The IMF forecasts a global real GDP growth rate of 3.2% for both 2024 and 2025, which is the same rate as in 2023. The forecast for 2024 has been revised upward by 0.1 percentage point due to a significant upward revision in the U.S. outlook. The IMF’s chief economist, Pierre-Olivier Gourinchas, stated that the global economy remains resilient, with many countries rebounding faster than previously predicted from the COVID-19 pandemic and cost-of-living crises.

Divergences in Growth Forecasts

While the overall global economic outlook is positive, there are stark divergences in growth forecasts for different countries. The euro zone’s growth forecast for 2024 has been revised downward to 0.8% from 0.9% in January, mainly due to weak consumer sentiment in Germany and France. Britain’s 2024 growth forecast has also been revised down to 0.5% as the country grapples with high interest rates and stubbornly high inflation. China’s growth forecast for 2024 remains unchanged at 4.6% compared to 5.2% in 2023, with a further drop to 4.1% in 2025. The IMF warns that the lack of a comprehensive restructuring package for China’s troubled property sector could prolong a downturn in domestic demand and worsen the country’s economic outlook.

Recommendations for China and Other Emerging Market Countries

The IMF suggests that China should accelerate the exit of non-viable developers, promote the completion of unfinished housing projects, and support vulnerable households to restore consumer demand. On a positive note, the IMF has raised its growth forecast for Brazil’s economy in 2024 by 0.5 percentage points to 2.2%. It has also increased India’s economic growth forecast for the same year by 0.3 percentage points to 6.8%. The IMF highlights that large emerging market countries in the Group of 20 (G20) are playing an increasingly significant role in the global trading system and have the capability to contribute more to global economic growth. However, low-income developing countries continue to face challenges in post-pandemic adjustments, experiencing greater economic “scarring” compared to middle-income emerging markets. As a group, the growth forecast for these low-income developing countries has been reduced to 4.7% for 2024, down from the previous estimate of 4.9% in January.

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