IMF lowers India growth estimate to 4.8% for 2019: Report
Davos, Jan 20: The International Monetary Fund (IMF) on Monday lowered growth estimate for India to 4.8 per cent for 2019, citing stress in the non-bank financial sector and weak rural income growth as the major factors for the downward revision.
While providing an update on the global economy ahead of the start of the World Economic Forum (WEF) annual summit, the IMF cut its India growth forecast to 4.8 per cent for 2019.
It
expects
growth
to
be
5.8
per
cent
in
2020
and
rise
to
6.5
per
cent
in
2021.
India-born
IMF
Chief
Economist
Gita
Gopinath
said
growth
in
India
slowed
sharply
owing
to
stress
in
the
non-bank
financial
sector
and
weak
rural
income
growth.
China's growth has been revised upward by 0.2 per cent to 6 per cent for 2020, reflecting the trade deal with the United States, she added.
In India, the IMF said domestic demand has slowed more sharply than expected amid stress in the non-bank financial sector and a decline in credit growth.
India's growth is estimated at 4.8 per cent in 2019, projected to improve to 5.8 per cent in 2020 and 6.5 per cent in 2021 (1.2 and 0.9 percentage point lower than in the October WEO), supported by the monetary and fiscal stimulus as well as subdued oil prices, it added.
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Gopinath also said the pickup in global growth for 2020 remains highly uncertain as it relies on improved growth outcomes for stressed economies like Argentina, Iran, and Turkey and for underperforming emerging and developing economies such as Brazil, India, and Mexico.