OECD Predicts Steady Growth for India and Indonesia in G20 Economies
The Organisation for Economic Co-operation (OECD) has forecasted stable economic growth for G20 emerging markets, including India and Indonesia. According to the latest report from the Paris-based research body, domestic demand growth in these countries will continue to be strong.
India’s Economic Outlook
India’s GDP is expected to grow by 6.7% in 2024-25 and 6.8% in 2025-26. The country’s GDP grew by an impressive 8.2% during the financial year 2023-24, maintaining its status as the fastest-growing major economy. Previous growth rates were 7.2% in 2022-23 and 8.7% in 2021-22. Many global rating agencies and multilateral organizations have also revised India’s growth forecasts upwards.
Indonesia’s Economic Outlook
Indonesia is projected to grow by 5.1% in 2024 and 5.2% in 2025, driven by solid domestic demand.
China’s Economic Outlook
China’s growth is expected to be supported through the second half of 2024 by increased government spending following a rise in local government bond issuance. However, challenges in the real estate sector and low consumer confidence will continue to affect private consumption growth. China’s GDP is projected to grow by 4.9% in 2024 and 4.5% in 2025.
Other G20 Economies
Brazil is anticipated to maintain solid economic momentum in the first half of 2024, aided by higher fiscal spending. Growth has also been relatively robust in other G20 countries, including the United States, Brazil, India, Indonesia, and the United Kingdom.
Inflation Trends
Aggregate consumer price inflation for G20 economies is projected to decline significantly, helped by lower commodity prices and easing service price inflation as labor cost pressures moderate. Headline inflation in the G20 is expected to fall from 6.1% in 2023 to 5.4% in 2024 and 3.3% in 2025. Inflation in emerging-market economies is projected to remain generally higher than in advanced economies but will also ease gradually. The OECD expects inflation to be back to target levels in most G20 countries by the end of 2025.
Doubts Revealed
OECD -: OECD stands for the Organisation for Economic Co-operation and Development. It is a group of countries that work together to improve the economy and well-being of people around the world.
G20 -: G20 stands for Group of Twenty. It is a group of 19 countries and the European Union that work together to discuss and promote international financial stability.
GDP -: GDP stands for Gross Domestic Product. It is the total value of all goods and services produced in a country in a year. It helps to measure how well a country’s economy is doing.
Inflation -: Inflation is when the prices of goods and services go up over time. It means that money buys less than it used to.
Real estate sector -: The real estate sector includes buying, selling, and renting properties like houses, buildings, and land. It is an important part of the economy.
Consumer confidence -: Consumer confidence is how people feel about the economy and their own financial situation. When people feel confident, they are more likely to spend money.