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