IMF maintains global growth forecasts; China, eurozone revised higher

Global gross domestic product would grow 3.5% in 2017 and 3.6% in 2018, unchanged from estimates issued in April, the IMF says

July 24, 2017 11:52 am | Updated August 08, 2017 03:18 pm IST - New Delhi

International Monetary Fund Economic Counsellor and Director of the Research Department Maurice Obstfeld. File picture

International Monetary Fund Economic Counsellor and Director of the Research Department Maurice Obstfeld. File picture

The International Monetary Fund’s (IMF) July World Economic Outlook Update retained India’s projected GDP growth rate for 2017-18 at 7.2%, and at 7.7% for 2018-19.

The IMF added that while activity slowed following demonetisation, growth for 2016-17 was higher than anticipated on the back of government spending and stronger momentum in the first part of that year, as revealed by data revisions.

“Growth in India is forecast to pick up further in 2017 and 2018, in line with the April 2017 forecast,” the IMF said. “While activity slowed following the currency exchange initiative [demonetisation], growth for 2016 — at 7.1% — was higher than anticipated due to strong government spending and data revisions that show stronger momentum in the first part of the year.”

The IMF had in April update had projected GDP GDP growth in India at 7.2% and 7.7% in the financial years 2017-18 and 2018-19, respectively. The July update retained those projections. This trend is in keeping with the global growth trend.

‘On track’

“The pick up in global growth anticipated in the April World Economic Outlook remains on track, with global output projected to grow by 3.5% in 2017 and 3.6% in 2018,” the IMF added said.

“The unchanged global growth projections mask somewhat different contributions at the country level. U.S. growth projections are lower than in April, primarily reflecting the assumption that fiscal policy will be less expansionary going forward than previously anticipated.”

On the other hand, the growth outlook was revised upwards for Japan, the euro area, and China.

“Inflation in advanced economies remains subdued and generally below targets; it has also been declining in several emerging economies, such as Brazil, India, and Russia,” the IMF said.

0 / 0
Sign in to unlock member-only benefits!
  • Access 10 free stories every month
  • Save stories to read later
  • Access to comment on every story
  • Sign-up/manage your newsletter subscriptions with a single click
  • Get notified by email for early access to discounts & offers on our products
Sign in

Comments

Comments have to be in English, and in full sentences. They cannot be abusive or personal. Please abide by our community guidelines for posting your comments.

We have migrated to a new commenting platform. If you are already a registered user of The Hindu and logged in, you may continue to engage with our articles. If you do not have an account please register and login to post comments. Users can access their older comments by logging into their accounts on Vuukle.