New Delhi | Jagran Business Desk: The International Monetory Fund (IMF) on Monday slightly revised downwards the outlook for global economy and flagged fundamental issues of reform in trade system, reported Reuters. The new projections estimate growth at 2.9 per cent in 2019, 3.3 per cent in 2020 and 3.4 per cent in 2021.
When it comes to India, The IMF trimmed back its 2020 global forecasts due to sharper-than-expected slowdowns in India and other emerging markets. In its latest economic outlook, the IMF lowered India's growth estimate for 2019 to 4.8 per cent, predicted a growth forecast of 5.8 per cent in 2020. However, India is expected to get the top spot in 2021, with a growth rate of 6.5 per cent to China's 5.8 per cent, according to the IMF.
Ahead of the World Economic Forum in Davos, IMF Managing Director Kristalina Georgieva saud the fund's simplest advice to policymakers is that they should keep doing what works. She cautioned that everyone must be ready to act again and immediately in a coordinated manner if growth begins to slow down again.
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Noting that a turning point is yet to be reached, the IMF said it was slightly revising downwards the growth outlook for the global economy.
IMF's Chief Economist Gita Gopinath said some risks have partially receded since October with developments on US-China trade deal. The slight downward revision of 0.1 per cent for two years and 0.2 per cent for the year after that in the global growth is largely due to downward revision for India estimates, she said.
IMF also lowered the growth forecasts 2020 and 2021 forecast for China citing structural constraints and deteriorating public finances. It now sees the economy growing at 0.8 pc this year, down from a previous forecast for 1.1 pc growth, and 1.0 pc in 2021, down from an earlier prediction for 1.4 pc growth.
(with PTI inputs)