India to remain fastest growing major economy even as IMF lowers growth forecast
New Delhi, July 17: The International Monetary Fund (IMF)'s latest growth forecast for the Indian economy stands at 7.3% and 7.5% for 2018 and 2019, respectively. This is slightly lesser than what IMF's growth forecast realeased in April which was 7.4% and 7.8% for 2018 and 2019, respectively.
The slight cut in growth forecast has been attributed to 'faster-than-anticipated monetary tightening and higher crude prices', said reports.
India is still the fastest growing economy, well ahead of China for which the growth forecasts for 2019 and 2019 are 6.6% and 6.4%, respectively.
India's growth rate is expected to rise from 6.7% in 2017 to 7.3% in 2018 and 7.5% in 2019, as drags from the currency exchange initiative and the introduction of the Goods and Services Tax fade, said the IMF's latest World Economic Outlook (WEO) update.
The IMF has cut GDP growth forecast for India and Brazil, but it has retained it for the United States, Russia, and China, while the outlook for some oil exporters has strengthened, said a PTI report.
The projection is 0.1 and 0.3 percentage points lower for 2018 and 2019, respectively, than in the April WEO, reflecting negative effects of higher oil prices on domestic demand and faster than-anticipated monetary policy tightening due to higher expected inflation, it said.
Despite this slight downgrade in its projections, India continues to outperform China, IMF's WEO update figures reflect. Growth in China is projected to moderate from 6.9% in 2017 to 6.6% in 2018 and 6.4% in 2019, as regulatory tightening of the financial sector takes hold and external demand softens, the report said.
OneIndia News with PTI inputs