IMF projects slower growth rate for India |
The International Monetary Fund (IMF) predicted a slower growth rate for India in 2019 and 2020 saying its GDP will now grow at the rate of 7 per cent and 7.2 per cent respectively reflecting a weaker-than expected outlook for domestic demand. “India`s economy is set to grow at 7.0 per cent in 2019, picking up to 7.2 per cent in 2020. The downward revision of 0.3 percentage point for both years reflects a weaker-than expected outlook for domestic demand,” the International Monetary Fund (IMF) said in its World Economic Update. However, it also said that India will still be the fastest-growing major economy of the world and much ahead of China, adding that this is the downward revision of 0.3 percentage point for both years. The IMF further said that in China, the negative effects of escalating tariffs and weakening external demand have added pressure to an economy already in the midst of a structural slowdown and needed regulatory strengthening to rein in high dependence on debt. With policy stimulus expected to support activity in the face of the adverse external shock, growth is forecast at 6.2 per cent in 2019 and 6.0 per cent in 2020 — 0.1 percentage point lower each year relative to the April World Economic Outlook (WEO) projection, the IMF said.
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