The International Monetary Fund (IMF) has predicted India’s growth at 6.7 per cent in 2017 and 7.4 per cent in 2018.
In its World Economic Outlook Update, the top agency estimated that the Indian economy would continue to grow by 7.8 per cent in 2019, which make the country the world’s fastest-growing economy in 2018 and 2019, the top ranking it briefly lost in 2017 to China.
The report which was released ahead of the World Economic Forum meet, listed out that aggregate growth forecast for the emerging markets and developing economies for 2018 and 2019 is unchanged. Growth is expected to pick up in India. The projection is in line with official estimates from the Central Statistics Office, which pegged GDP growth at 6.5 per cent this fiscal.
The Washington DC-based agency had in October 2017 lowered India’s growth forecast reflecting persistent disruptions associated with the currency exchange initiative introduced in November 2016, as well as transition costs related to the launch of the national goods and services tax. In April, the IMF had pegged India’s GDP growth at 7.2 per cent for 2017 and at 7.7 per cent in 2018. In contrast, China’s growth is expected to slow down from 6.8 per cent in 2017 to 6.6 per cent in 2018 and further to 6.4 per cent in 2019.