IMF applauds India as the fastest growing economy for this year

Washington, May 9: International Monetary Funds (IMF) has lauded India by saying that it will be the fastest growing economy for the year 2018 with 7.4 % that rises to 7.8 percent in 2019 with medium-term prospects remaining positive.

The IMF`s Asia and Pacific Regional Economic Outlook report said that India was recovering from the effects of demonetization and the introduction of the Goods and Services Tax and "the recovery is expected to be underpinned by a rebound from transitory shocks as well as robust private consumption." Medium-term consumer price index inflation "is forecast to remain within but closer to the upper bound of the Reserve Bank of India`s inflation-targeting banda of four percent with a plus or minus two percent change, the report said.

 

The report further said, “The current account deficit in FY2017/18 is expected to widen somewhat but should remain modest, financed by robust foreign direct investment inflows.”

Likewise, IMF has also forecasted the growth of other Asian Countries by saying, “Growth in Asia is forecast at 5.6 percent in 2018 and 2019, while inflation is projected to be subdued. Strong and broad-based global growth and trade, reinforced by the US fiscal stimulus, are expected to support Asia’s exports and investment, while accommodative financial conditions should support domestic demand. China’s growth is projected to ease to 6.6 percent, partly reflecting the authorities’ financial, housing, and fiscal tightening measures. Growth in Japan has been above potential for eight consecutive quarters and is expected to remain strong this year at 1.2 percent.”