Outlook bleak for the world, but India will see robust growth: IMF
The International Monetary Fund (IMF) on Tuesday projected “robust” growth for India in 2016 and 2017 and a “more gradual” pick-up in global economy than it had said before.business Updated: Jan 20, 2016 01:32 IST
The International Monetary Fund (IMF) on Tuesday projected “robust” growth for India in 2016 and 2017 and a “more gradual” pick-up in global economy than it had said before.
India would grow 7.5% in both 2016 and 2017, the Fund said in its latest World Economic Outlook said, with no changes in projections from its October 2015 report.
“India and the rest of emerging Asia are projected to continue growing at a robust pace,” it said, with a possible threat of “headwinds” from China.
“In advanced economies, a modest and uneven recovery is expected to continue,” it said, adding, “The picture for emerging market and developing economies is diverse but in many cases challenging.”
The Fund’s outlook closely tracks that of the World Bank announced earlier this month, projecting a 7.8% growth for India in 2016, while other emerging markets struggle.
The global economy, the Fund said, will grow by 3.4% and 3.6% over the same period, which was lower than its own October projections of 0.2% for both years.
The Fund blamed it on “weaker pick-up” in emerging market economies, which have driven global growth since the 2007-08 financial crisis. The other factors cited for the revision were lower oil prices hurting growth prospects in West Asia and plateauing of growth momentum in the US.
China’s rebalancing — shift in focus from investment and manufacturing to consumption and services — was cited as the single- most significant influence on the global economy now.