The International Monetary Fund updated its World Economic Outlook today, which forecasted a global economic slowdown in the year 2019. According to the IMF report, the global economy is expected decelerate from 3.7 per cent in 2018 to 3.5 per cent in 2019.
However, as per the same report, India’s economic growth is expected to remain the fastest among the world’s major economies for the next couple of year. IMF World Economic Outlook stated that India’s gross domestic product (GDP) will expand at 7.5 per cent in 2019 and 7.7 per cent in 2020.
The IMF in its World Economic Outlook said: “India’s economy is poised to pick up in 2019, benefiting from lower oil prices and a slower pace of monetary tightening than previously expected, as inflation pressures ease.”
IMF praised the RBI in its report, stating that the central banks in India “maintained policy rates on hold and acted to ease domestic funding conditions (by lowering reserve requirements for banks and providing liquidity to non-bank financial companies, respectively).”
The IMF on its global economic outlook also added: “Growth in emerging and developing Asia will dip from 6.5 per cent in 2018 to 6.3 per cent in 2019 and 6.4 per cent in 2020. Despite fiscal stimulus that offsets some of the impact of higher US tariffs, China’s economy will slow due to the combined influence of needed financial regulatory tightening and trade tensions with the United States.”