IMF, ADB project 7% GDP growth for India
19 Jul 2024
The International Monetary Fund (IMF) has raised its growth outlook for India for the current year to 7 per cent from its earlier projection of 6.8 per cent, even as the Asian Development Bank (ADB) retained its earlier projection of 7 per cent GDP growth for India in 2024.
In its update on Global Economic Outlook, released on 16 July, IMF raised its growth projection for India in 2025 to 7.2 per cent, which is also in line with ADB projection of 7,2 per cent GDP growth in 2025.
In its Asia Development Outlook July update released on Tuesday, ADB projected retail price inflation in India to average 4.5 per cent next year, also in line withIMF projection of around 4.6 per cent.
The IMF report keeps growth projection for the Chinese economy unchanged at 5 per cent this year, even as it said it is optimistic on China's consumption returning to normal in the next few years, although falling birth rates will still cause an economic downturn.
Growth in India and China, which accounts for almost half of global growth and will remain the main engine for the global economy.
Growth in major advanced economies is steadying with the gap in production and demand is narrowing, according to the IMF report.
The US economy is showing signs of cooling with a strong performance in 2023 while the Euro area is set for a return to the growth path, the report adds.
IMF expects global economic growth to remain broadly unchanged at 3.2 per cent in 2004, and slightly higher at 3.3 per cent in 2025 amid persistent service sector inflation.
In fact, IMF said the upside risks of inflation, mainly related to the service sector, is holding up progress on disinflation, while also complicating monetary policy normalisation.
