IMF raises India’s growth projection to 6.8% in 2024 – Times of India

IMF raises India's growth projection to 6.8% in 2024 - Times of India

New Delhi: India’s International Monetary Fund Estimates of growth 6.8 percent from the previous forecast of 6.5 percent. The revision was made keeping in view the rapid domestic demand conditions and the growing working age population.
“India retained its position as the fastest growing economy globally, surpassing China’s growth estimate of 4.6 percent during the same period,” the IMF said in a statement. “
Growth estimates for India remain strong at 6.8 percent. 2024 and 6.5 percent in 2025, according to the latest edition of World Economic Outlook by the IMF. The report highlights that this strength is due to continued strength in domestic demand and a growing working-age population.
At the same time, growth in emerging and developing Asia is expected to slow, from 5.6 percent in 2023 to 5.2 percent in 2024 and 4.9 percent in 2025. This revision is slightly higher than the January 2024 figures. .
In its January update, the IMF had forecast a growth rate of 6.5 percent for India in 2024.
“Growth in China is expected to slow from 5.2 percent in 2023 to 4.6 percent in 2024 and 4.1 percent in 2025,” the IMF said. The decline is attributed to the mitigating impact of one-off factors such as “post-pandemic consumption and increased fiscal stimulus and ongoing weakness in the property sector”.
Global growth, which was 3.2 percent in 2023, is expected to maintain this pace in both 2024 and 2025.
According to the IMF, the forecast for 2024 has been adjusted by 0.1 percentage point from the January 2024 WEO update, and by 0.3 percentage point from the October 2023 WEO.
“Policymakers need to focus on strengthening government finances and increasing economic resilience through initiatives such as rejuvenation. Economic development prospects,” said IMF Chief Economist Pierre-Olivier Gournchas.
The Chief Economist highlighted that global growth has bottomed out by the end of 2022, at 2.3 percent, while median headline inflation has peaked at 9.4 percent. Economists forecast growth to remain steady at 3.2 percent for the current year and beyond, while median headline inflation is expected to ease from 2.8 percent by the end of 2024 to 2.4 percent by the end of 2025. Is. “Most indicators continue to suggest a soft landing,” he noted.
“We also expect a reduced economic scar from the crises of the past four years,” Guernchas said, although estimates vary between countries. The US economy has surpassed pre-pandemic pace. Nations, many of whom are still dealing with the aftermath of the pandemic and the challenges of precious lives.”
“China’s economy is suffering from a slump in its property sector. Debt booms and busts never resolve themselves quickly, and this is no exception.”
He said domestic demand is likely to decline unless strong measures are taken to address the root cause. “With weak domestic demand, external surpluses may increase. The concern is that this could exacerbate trade tensions in an already tense geopolitical environment.”

Business news,World Economic Outlook,The IMF,Estimates of growth,Economic development,6.8%,2024
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