The Indian economy will be among the fastest growing economies of the world in 2019 and 2020 with growth rates of 7.5 per cent and 7.7 per cent respectively, the IMF said in its latest update at Davos.
India will buck the global growth trends for the period which has been revised downwards, as trade tensions continue and financial conditions tighten. Global growth was revised to 3.5 per cent in 2019, a downward revision of 0.2 per cent from the October report, and 3.6 per cent in 2020, a reduction of 0.1 per cent.
The Indian 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 Fund said.
ALSO READ: Ahead of Budget 2019, Halwa ceremony performed by Junior Min in Arun Jaitley’s absence
“We believe the risks to more significant downward corrections are rising.”
The World Economic Outlook Update was released by chief economist Gita Gopinath on Monday and said that India’s growth was estimated to be 7.3 per cent for the current fiscal year.
At the launch of the report in Davos, Switzerland, Gopinath said: “The global expansion is weakening and at a rate that is somewhat faster than expected.”
However, she also said, “While this does not mean we are staring at a major downturn, it is important to take stock of the many rising risks.”
Gopinath, a former adviser to the Kerala government and highly regarded professor at Harvard University, took over as the chief economist of the IMF in January, becoming the first woman to hold the key post in global economic policy-making.
Click here for Latest News updates and viral videos on our AI-powered smart news