There has been some great news coming from the International Monetary Fund regarding India’s growth and economy. In its economic outlook, the IMF has increased its earlier estimate of India’s growth in the current financial year to 7 percent. Which is the highest in the world. In fact, there is a continuous rise in private consumption in rural India. The effect of which is clearly visible on the country’s economy. Earlier in April, the IMF had increased India’s GDP growth estimate from 6.5 percent to 6.8 percent. On the other hand, the RBI increased its estimate from 7 percent to 7.2 percent in June.
How long can India’s growth last?
In a post on Twitter, IMF Deputy Managing Director Geeta Gopinath said India’s GDP grew by 7.8 per cent on an annual basis in the last quarter of fiscal year 2024. Apart from this, the Centre has raised the estimate of the overall growth rate for the financial year 2024 to 8.2 per cent. Overall, the IMF on Tuesday said it still expects the global economy to grow at a slower pace of 3.2 per cent this year. The IMF has not made any change in its estimate. What is special is that the estimated growth for the year 2023 is lower at 3.3 per cent. From 2000 to 2019, the global growth rate averaged 3.8 per cent on an annual basis, due to the surge in economic activity before the pandemic.
New WEO Update: Growth in India and China to account for almost half of global growth in 2024. Growth in major advanced economies more aligned: Euro area growth picks up as the United States shows signs of cooling after a strong year. Read here: https://t.co/LQe1ZD2sOR pic.twitter.com/IyjWgBFv68
– Gita Gopinath (@GitaGopinath) July 16, 2024
India and China in the spotlight
The IMF, a global organization that provides loans to 190 countries around the world, works to promote economic growth and financial stability and reduce global poverty. With the latest data from the World Economic Outlook, IMF Chief Economist Pierre-Olivier Gourinchas wrote that the share of China and India in global economic growth this year will be almost half. The reason is the increase in sugar exports in early 2024. The IMF has raised its growth forecast for China this year to 5.0 percent. While in April it was 4.6 percent. However, this is less than 5.2 percent in 2023.
india number 1
According to the latest estimates, India’s economic growth rate is expected to be 7 percent. This is up from the 6.8 percent estimated in April. One reason for this is strong consumer spending in rural areas. In the case of the United States, the growth rate estimate for this year has been lowered to 2.6 percent, while in April it was expected to be 2.7 percent. Similarly, the economic growth estimate for Japan has been lowered from 0.9 percent to 0.7 percent. The IMF raised its growth forecast for 2024 for the 20 countries sharing the euro to 0.9 percent. Last year the growth rate for the euro area was 0.5 percent.
