- By Aditya Pratap Singh
- Tue, 16 Apr 2024 06:59 PM (IST)
- Source:PTI
The International Monetary Fund on Tuesday raised its growth projection for India to 6.8 percent from its January forecast of 6.5 percent, citing strong domestic demand conditions and a rising working-age population. With this, India remains the fastest-growing economy in the world, ahead of China's projected growth of 4.6 percent during the same period.
"Growth in India is projected to remain strong at 6.8 percent in 2024 and 6.5 percent in 2025, with the robustness reflecting continuing strength in domestic demand and a rising working-age population," said the latest edition of the World Economic Outlook released by the IMF ahead of the annual spring meetings of the IMF and the World Bank.
At the same time, it is anticipated that growth in emerging and developing Asia will decline from an estimated 5.6% in 2023 to 5.2% in 2024 and 4.9% in 2025, a slight upward revision compared to the January 2024 WEO Update. The IMF projected that India would expand by 6.5 percent in 2024 in its January update.
"Growth in China is projected to slow from 5.2 percent in 2023 to 4.6 percent in 2024 and 4.1 percent in 2025, as the positive effects of one-off factors –– including the post-pandemic boost to consumption and fiscal stimulus –– ease and weakness in the property sector persists," the IMF said.
Global growth, estimated to be 3.2 percent in 2023, is projected to continue at the same pace in 2024 and 2025. The forecast for 2024 has been revised up by 0.1 percentage point from the January 2024 WEO Update and by 0.3 percentage point from the October 2023 WEO, the IMF said. Pierre-Olivier Gourinchas, the IMF's chief economist, said that policymakers should prioritize steps toward greater economic resilience, such as strengthening government finances and revitalizing economic growth prospects.
(With PTI inputs)
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