The International Monetary Fund (IMF) on Wednesday raised India's growth forecast to 5.4 per cent for 2009 from an earlier 4.5 per cent, even as it said the global economy is showing signs of pulling itself out of the worst recession in the last 60 years.
“The world economy is stabilising, helped by unprecedented macroeconomic and financial policy support. However, the recession is not over and the recovery is likely to be sluggish,” it said in the latest update of the World Economic Outlook.
According to the latest projections, world economy will contract by 1.4 per cent this year.
“Following a disappointing first quarter, during which the global economy contracted almost as fast as during the fourth quarter of 2008, data points to a return to modest growth at the global level,” it said.
While India is expected to witness a growth rate of 5.4 per cent in 2009, the IMF projected that it would grow by 6.5 per cent in 2010. China would expand by 7.5 per cent and 8.5 per cent during the two years.
The agency said emerging and developing economies are projected to regain growth momentum during the second half of 2009.
{{/usCountry}}The agency said emerging and developing economies are projected to regain growth momentum during the second half of 2009.
{{/usCountry}}“Low-income countries are facing important challenges of their own because official aid has fallen and these economies are particularly vulnerable to swings in commodity prices,” it added.
It said advanced economies are projected to decline by 3.8 per cent in 2009 before growing by 0.6 per cent in 2010.