India’s economy will pick up pace next year: IMF

PTI New Delhi | Updated on January 11, 2018 Published on July 24, 2017

bl25_IMF economy

Sees growth at 7.7%; retains forecast of 7.2% for current fiscal year

India will stay ahead of China in the growth sweepstakes in 2017 as well as 2018, said the International Monetary Fund (IMF), while retaining the country’s GDP forecast at 7.2 cent for the current fiscal year.

According to the IMF’s World Economic Outlook Update, India’s growth is projected to accelerate to 7.7 per cent in 2018-19, from the 7.2 per cent forecast for 2017-18.

While the multilateral agency has retained India’s growth estimate as provided in the World Economic Outlook (WEO) in April, in the case of China, the forecast has been marginally raised to 6.7 per cent in 2017 and 6.4 per cent in 2018 from earlier projections.

India, however will continue to grow faster than China in 2017 as well as 2018.

Growth in India, the IMF said, is forecast “to pick up further in 2017 and 2018, in line with the April 2017 forecast.

It added: “While activity slowed following the currency exchange initiative, growth for 2016 — at 7.1 per cent — was higher than anticipated due to strong government spending and data revisions that show stronger momentum in the first part of the year.”

According to the WEO update, inflation in advanced economies remains subdued and generally below target and has been declining in several emerging economies such as Brazil, India and Russia too.

Global growth

It further said economic activity in both advanced and emerging and developing economies is forecast to accelerate in 2017 to 2 per cent and 4.6 per cent, respectively, with global growth projected to be 3.5 per cent, unchanged from the April forecast.

The Indian economy grew 7.1 per cent in 2016-17.

Published on July 24, 2017
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