Even as global growth estimate was lowered, India's growth projection for FY19 at 7.3 per cent has been retained at 7.3 per cent by International Monetary Fund (IMF) on Monday.
Even as global growth estimate was lowered, India’s growth projection for FY19 at 7.3 per cent has been retained at 7.3 per cent by International Monetary Fund (IMF) on Monday. Indian economy would benefit from lower crude oil prices and slower pace of monetary tightening, the IMF said in its January World Economic Outlook (WEO) update. India would remain the fastest growing major economies globally, it also said.
“India’s economy is poised to pick up in 2019, benefiting from lower oil prices and a slower pace of monetary tightening than previously expected, as inflation pressures ease,” the IMF said. India is projected to grow at 7.5 per cent in 2019 and 7.7 per cent in 2020,. It comes at one percentage point ahead of China’s projected growth of 6.2 per cent in these two years, the IMF noted.
The IMF trimmed global growth projections for 2019 and 2020 to 3.5 per cent and 3.6 per cent respectively.
“Global growth in 2018 is estimated to be 3.7 per cent, as it was last fall, but signs of a slowdown in the second half of 2018 have led to downward revisions for several economies. Weakness in the second half of 2018 will carry over to coming quarters, with global growth projected to decline to 3.5 per cent in 2019 before picking up slightly to 3.6 per cent in 2020,” the IMF added.