Tuesday, June 2, 2020
News

India fastest growing economy at 7.4% in 2018: IMF

   SocialTwist Tell-a-Friend    Print this Page   COMMENT

United Nations | Wednesday, 2018 8:45:00 AM IST
The International Monetary Fund (IMF) reaffirmed on Wednesday that India will be the fastest growing major economy in 2018, with a growth rate of 7.4 per cent that rises to 7.8 per cent 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 demonetisation 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 per cent with a plus or minus two per cent change, the report said.

However, it added a note of caution: "In India, given increased inflation pressure, monetary policy should maintain a tightening bias."

It said the consumer price increase in 2017 was 3.6 per cent and projected it to be five per cent in 2018 and 2019.

"The current account deficit in fiscal year 2017-18 is expected to widen somewhat but should remain modest, financed by robust foreign direct investment inflows," the report said.

After India, Bangladesh is projected to be the fastest-growing economy in South Asia with growth rates of seven per cent for 2018 and 2019; Sri Lanka is projected to grow at four per cent in 2018 and 4.5 in 2019, and Nepal five per cent in 2018 and four per cent in next. (Pakistan, which is grouped with the Middle East, is not covered in the Asia report.)

Overall, the report said that Asia continues to be both the fastest-growing region in the world and the main engine of the world's economy.

The region contributes more than 60 per cent of global growth and three-quarters of this comes from India and China, which is expected to grow 6.6 per cent in 2018 and 6.4 per cent in 2019, it said.

The report said that US President Donald Trump's fiscal stimulus is expected to support Asia's exports and investment.

The Asian region's growth rate was expected to be 5.6 per cent for 2018 and 2019.

However, in the medium term the report said that "downside risks dominate" for the region and these include a tightening of global financial conditions, a shift toward protectionist policies, and an increase in geopolitical tensions.

Because of these uncertainties the IMF urged the countries in the region to follow conservative policies "aimed at building buffers and increasing resilience" and push ahead with structural reforms.

"While mobile payments are expanding sharply in such economies as Bangladesh, India, and the Philippines, on average Asia is lagging sub-Saharan Africa," the IMF said, adding that the region should take steps to ensure it is able to reap the full benefits of increasing digitalisation in the global economy.

(Arul Louis can be reached at arul.l@ians.in)

--IANS al/in

( 501 Words)

2018-05-09-08:28:08 (IANS)

 
  LATEST COMMENTS (0)
POST YOUR COMMENT
Comments Not Available
 
POST YOUR COMMENT
 
 
TRENDING TOPICS
 
 
CITY NEWS
MORE CITIES
 
 
 
MORE BUSINESS NEWS
10 podcasts to listen to while you're wo...
Uday Kotak to sell 2.83% equity to reduc...
GoAir, IndiGo get more time to change fa...
V-Guard's Q4 consolidated net profit nea...
RIL rights issue oversubscribed 1.1 time...
Young state Telangana torchbearer of dev...
More...
 
INDIA WORLD ASIA
Standing Committee meet on Home Affairs ...
Shripad Naik inaugurates new building of...
Classified documents recovered from Paki...
Hyderabad man dies in Riyadh, father urg...
DGCA asks airlines to try keeping middle...
Meeting of standing committee on home af...
More...    
 
 Top Stories
'Wajid Bhai treated me like a son':... 
10 people test positive for COVID-1... 
Cyclone Nisarga: NDRF deploys teams... 
Real Madrid will not host games at ... 
Matters listed in SC's virtual cour... 
Naval vessel INS Jalashwa reaches T... 
Yoga camps being organised for poli... 
Trudeau announces infra fund to hel...