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IMF keeps India’s growth forecast at 7.2% for 2017-18

According to IMF’s World Economic Outlook Update, India’s growth is projected to accelerate to 7.7 % in 2018-19, from 7.2 % forecast for 2017-18.

business Updated: Jul 24, 2017 15:36 IST
IMF,India,World Economic Outlook Update
The International Monetary Fund headquarters building in Washington, U.S.(Reuters)

India will stay ahead of China in growth sweepstakes in 2017 as well as 2018, said the International Monetary Fund (IMF) while retaining the country’s GDP forecast at 7.2% for the current fiscal.

According to IMF’s World Economic Outlook Update, India’s growth is projected to accelerate to 7.7 % in 2018-19, from 7.2 % forecast for 2017-18.

While the IMF has retained India’s growth estimate as provided in the World Economic Outlook (WEO) in April, in the case of China, the forecast has been marginally raised to 6.7 % in 2017 and 6.4 % in 2018 from earlier projections.

India, however will continue to grow faster than China in 2017 as well as 2018.

Growth in India, the multilateral agency said, is forecast “to pick up further in 2017 and 2018, in line with the April 2017 forecast.

It added: “While activity slowed following the currency exchange initiative, growth for 2016 at 7.1 % was higher than anticipated due to strong government spending and data revisions that show stronger momentum in the first part of the year.”

According to the WEO update, inflation in advanced economies remains subdued and generally below target and has been declining in several emerging economies such as Brazil, India and Russia too.

It further said economic activity in both advanced and emerging and developing economies is forecast to accelerate in 2017 to 2 % and 4.6 %, respectively, with global growth projected to be 3.5 %, unchanged from the April forecast.

Indian economy grew 7.1 % in 2016-17.

The IMF further said that with a pick-up in global trade and strengthening domestic demand, growth in the ASEAN-5 economies is projected to remain robust at around 5 %.

First Published: Jul 24, 2017 15:36 IST