IMF Predicts India’s Growth at 7% for 2024
The International Monetary Fund (IMF) has maintained its growth projections for India, expecting a 7% growth rate for the current fiscal year ending March 31, 2025, and 6.5% for the following year. This adjustment reflects the exhaustion of pent-up demand from the pandemic as India’s economy reconnects with its potential.
Global Economic Outlook
The IMF’s World Economic Outlook highlights a period of weak medium-term growth for the global economy, urging reforms. The US growth forecast for 2024 has been raised to 2.8%, with a 2025 projection of 2.2%. Global growth remains steady at 3.2% for this year and next.
China and Global Concerns
China’s growth rate has been adjusted to 4.8% for 2024, with 2025 remaining at 4.5%. The IMF warns of geopolitical tensions, particularly in the Middle East, affecting commodity prices and trade. Despite these challenges, IMF Chief Economist Pierre-Olivier Gourinchas notes progress in the global fight against inflation, especially in the US.
Doubts Revealed
IMF -: IMF stands for International Monetary Fund. It is an organization of 190 countries that works to promote global economic stability and growth by providing financial support and advice.
Growth Projections -: Growth projections are estimates of how much a country’s economy is expected to grow in the future. It is usually expressed as a percentage.
Fiscal Year -: A fiscal year is a 12-month period used by governments and businesses for accounting purposes. In India, it starts on April 1 and ends on March 31 of the next year.
World Economic Outlook -: The World Economic Outlook is a report published by the IMF. It provides analysis and forecasts of the global economy, including growth rates for different countries.
Geopolitical Tensions -: Geopolitical tensions refer to conflicts or disagreements between countries that can affect global peace and economic stability. These can include issues like border disputes or trade wars.
Inflation -: Inflation is the rate at which the general level of prices for goods and services rises, leading to a decrease in purchasing power. It means things get more expensive over time.
