IMF cuts India’s growth forecast for 2019-20 to 7%

  1. The International Monetary Fund(IMF) has released the World Economic Outlook report.The report has projected a slower growth rate for India in 2019 and 2020.It has projected that Indian economy will grow at 7.0% in 2019 and 7.2% in 2020.
  2. The downward revision of 0.3 percentage point for both years reflects a weaker-than expected outlook for domestic demand.However,India will still be the fastest growing major economy of the world and much ahead of China.
  3. IMF has said that the slowdown in growth in India was partly a reflection of the uncertainties associated with the just concluded general elections in India as well as tightening of borrowing conditions for small and medium enterprises.
  4. The IMF has also revised downward its growth projections for China as well as for the world to 6.2% and 3.2% respectively for 2019.
  5. IMF has said that the global growth is being affected by prolonged policy uncertainty as (a)trade tensions remain high despite the recent US-China trade truce (b)technology tensions have erupted threatening global technology supply chains and (c)the prospects of a no-deal Brexit have increased.