What TV doesn't, print can't; we deliver.
What TV doesn't, print can't; we deliver.
IMF’s Deputy Managing Director Gita Gopinath highlighted on July 16 that India and China are projected to drive nearly half of global economic growth in 2024. Quoting the World Economic Outlook update Gopinath noted, “Growth in major advanced economies is more aligned: Euro area growth picks up as the US shows signs of cooling after a strong year.
NEW DELHI: The International Monetary Fund (IMF), Deputy Managing Director Gita Gopinath highlighted on July 16 that India and China are projected to drive nearly half of global economic growth in 2024. Quoting the World Economic Outlook update Gopinath noted, “Growth in major advanced economies is more aligned: Euro area growth picks up as the US shows signs of cooling after a strong year.”
The IMF’s latest World Economic Outlook (WEO) maintains a global growth forecast of 3.2% for 2024, aligned with its April projections, and anticipates a slight uptick to 3.3% in 2025. Despite these gains, the outlook for the next five years remains subdued, largely due to decelerating momentum across emerging Asian markets. China, for instance, is projected to moderate to a growth rate of 3.3 percent by 2029, significantly lower than its current pace.
New WEO update: Growth in India & China will account for almost half of global growth in 2024. Growth in major advanced economies is more aligned: euro area growth picks up as the US shows signs of cooling after a strong year. Read here: https://t.co/LQe1ZD2sOR pic.twitter.com/IyjWgBFv68
— Gita Gopinath (@GitaGopinath) July 16, 2024
Challenges also persist due to service sector inflation hindering disinflation efforts, complicating the normalization of monetary policies. Risks of inflation remain elevated amid escalating trade tensions and policy uncertainties, suggesting a careful sequencing of policy measures to ensure price stability and bolster economic buffers.
Regarding inflation, global projections indicate a decline to 5.9 percent this year from 6.7 percent in the previous year, suggesting a gradual easing. However, in advanced economies such as the United States, progress towards disinflation has slowed, with inflationary risks tilting upwards.
Furthermore, the IMF has revised India’s growth projection upward for the fiscal year 2025 by 20 basis points to 7%, citing improved prospects in private consumption, especially in rural areas. Looking ahead to fiscal year 2026, GDP growth is expected to moderate to 6.5%, consistent with earlier forecasts.
The Reserve Bank of India has also adjusted India’s growth outlook upwards to 7.2% from its previous estimate of 7% announced in June. These revisions underscore growing optimism about India’s economic prospects amidst evolving global economic conditions and domestic consumption trends.
