IMF: India’s economic growth will remain at a strong level of 6.5% in 2024 and 2025

The International Monetary Fund (IMF) on Tuesday said in its latest World Economic Outlook update that India’s economic growth is expected to remain strong at 6.5% in 2024 and 2025. The report predicts that global economic growth will be 3.1% in 2024 and 3.2% in 2025.

The International Monetary Fund said that China’s economic growth is expected to be 4.6% and 4.1% in 2024 and 2025 respectively. Since the World Economic Outlook in October 2023, the economic growth rate in 2024 has been increased by 0.4 percentage points, adding said that U.S. economic growth may drop from 2.5% in 2023 to 2.1% in 2024 and 1.7% in 2025.

The International Monetary Fund said in its latest report released in 2024 and 2025: “India’s economic growth is expected to maintain strong growth of 6.5% in 2024 and 2025, with the growth rate in these two years revised up by 0.2 percentage points from October. Reflecting the resilience of domestic demand.” South Africa.

The International Monetary Fund report shows that India remains the fastest growing among emerging economies. “The dark clouds are beginning to lift. The global economy is beginning to finally move toward a soft landing, with inflation falling steadily and growth remaining stable. But the pace of expansion remains slow and turbulence is likely ahead,” said Pierre Olivier, chief economist of the International Monetary Fund. Gurinchas said in a blog post.

He said the International Monetary Fund expects U.S. economic growth to slow down and tight monetary policy is still having an impact on the economy, while China’s weak consumption and investment will continue to weigh on economic activity. Meanwhile, economic activity in the euro area is expected to rebound slightly after a challenging 2023, when high energy prices and tight monetary policy limited demand.

“Many other economies continue to show strong resilience, with growth accelerating in Brazil, India and the major Southeast Asian economies,” Gurinchas said. The International Monetary Fund said overall global inflation is expected to fall from 6.8% (annual average) in 2023 to 5.8% in 2024 and 4.4% in 2025.

Compared with the October 2023 forecast, the global forecast for 2024 has not been revised and the forecast for 2025 has been revised down by 0.2 percentage points. Developed economies are expected to experience faster deflation, with the inflation rate falling by 2.0 percentage points to 2.6% in 2024. In emerging market and developing economies, inflation is expected to fall just 0.3 percentage points to 8.1%.

The near-term challenge for policymakers is to successfully control inflation eventually down to target levels, adjusting monetary policy to a less restrictive stance based on underlying inflation dynamics and “significant dissipation of wage and price pressures.” “At the same time, as inflation falls in many cases, economies are better able to absorb the impact of fiscal austerity, refocusing on fiscal consolidation to rebuild budgetary capacity to deal with future shocks and raise revenue for new spending priorities , and curbing the increase in public debt is necessary.

“Targeted and well-chosen structural reforms will strengthen productivity growth and debt sustainability and accelerate progress towards higher income levels. Among other things, more effective multilateral coordination is needed to address debt and avoid debt,” the report said. distress, creating space for necessary investments and mitigating the effects of climate change.

(This story has not been edited by News18 staff and is published from associated news agency – PTI)