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IMF approves India’s strength, no country in the world will be able to compete – Read

By News Update

During the Covid pandemic, India had shown its strong economy to the world. From then till now, India’s growth has been seen continuously. On which after the World Bank, the International Monetary Fund i.e. IMF has also put its seal of approval. Even though IMF has not made any changes in India’s growth forecast, clear signs of recession are being seen in the rest of the world’s economy amid geopolitical tension. In such a situation, the stability of India’s economic growth is also being considered a very good sign. Let us also tell you what the IMF has estimated regarding the country’s GDP.

IMF estimates

The International Monetary Fund (IMF) said on Tuesday that India’s gross domestic product (GDP) growth rate is expected to decline from 8.2 percent in 2023 to seven percent in 2024. It will further reduce to 6.5 percent in 2025. The IMF said that the pent-up demand caused by the Covid pandemic has ended as the economy is taking shape again with its potential. Regarding the global economy, the IMF said that the fight against inflation has been won to a large extent, although price pressure remains in some countries. Earlier this month, the Reserve Bank of India had estimated the country’s growth at 7.2 percent due to strong domestic demand. The World Bank has also estimated India’s GDP for the financial year 2025 at only 7 percent.

How much can inflation last?

Core inflation reached a high of 9.4 percent on an annual basis in the third quarter of 2022, after which it may fall to 3.5 percent by the end of 2025. If this happens, it will be less than the average level of 3.6 percent between 2000 and 2019. Recently, inflation figures for September were presented by the government. India’s inflation rate was 5.5 percent in the month of September. Whereas in the months of July and August the country’s inflation rate was seen below 4 percent.

Estimates on the global economy

In its annual World Economic Outlook released here, the IMF estimated that global economic growth will remain stable at 3.2 percent in 2024 and 2025. According to IMF chief economist Pierre-Olivier Gourinchas, the global economy has been unusually aggressive in controlling inflation. He said that the growth rate of the global economy will remain more or less stable at 3.2 percent in 2024 and 2025. However, the growth rate of some low-income countries and developing economies may decline significantly. The IMF report slightly lowered China’s growth forecast to 4.8 percent, noting “better than expected net exports” despite challenges in the real estate sector and low consumer confidence. On the other hand, the economic output of Brazil and Russia has been revised to 3 percent and 3.6 percent respectively for 2024. It is up to 2.8 percent even for the United States.

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