World Economic Outlook Report:IMF

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News:The International Monetary Fund(IMF) has released its World Economic Outlook report.

Facts:

Report on Global Growth:

  • The report has reduced its global growth projection to 2.9 percent in 2019, 3.3 percent in 2020 and 3.4 percent for 2021.
  • The global growth forecasts has been reduced due to sharper than expected slowdowns in India and other emerging markets.
  • But the report has said that a US-China trade deal is an expected sign that trade and manufacturing activity may soon recover.

Concerns:

  • Rising geopolitical tensions between the United States and Iran could disrupt global oil supply, hurt sentiment and weaken business investment.
  • Social unrest across many countries could disrupt activity, complicate reform efforts and weaken sentiment dragging the growth lower than projected.

Report on India:

  • The report has revised downward India‚Äôs gross domestic product (GDP) growth projection to 4.8% for the financial year 2020 (FY20) and 5.8% for FY21.
  • The downward is attributed to the current slowdown in the country, stress in the non-bank financial sector and weak rural income growth.
  • However,the growth is expected to pick up to 6.5 percent in FY22, supported by monetary and fiscal stimulus as well as subdued oil prices.

Additional information:

About International Monetary Fund

  • The International Monetary Fund (IMF) is an organization of 189 countries. It was established in 1945.
  • The main goal of IMF is to ensure the stability of the international monetary system. 
  • It also seeks to facilitate international trade, promote high employment and sustainable economic growth, and reduce poverty around the world.