India to be fastest-growing economy in 2018, 2019: IMF

25 Jan '18

2 min read

Staying bullish on India’s growth potential in its World Economic Outlook Update, the International Monetary Fund (IMF) has retained its gross domestic product (GDP) forecast for the country at 6.7 per cent in 2017 and 7.4 per cent in 2018. The growth will be 7.8 per cent in 2019, which would make it the world’s fastest-growing economy in the next two years.

India lost its top ranking briefly in 2017 to China. The report was released ahead of the World Economic Forum meeting in Davos.
IMF had lowered India’s growth forecast in October last year reflecting ‘lingering disruptions’ due to demonetisation and the implementation of the goods and services tax (GST). In April, the organisation had pegged India’s GDP growth at 7.2 per cent for 2017 and at 7.7 per cent in 2018.

In contrast, China’s growth is expected to slow down from 6.8 per cent in 2017 to 6.6 per cent in 2018 and further to 6.4 per cent in 2019, the report says.

The forecast for world output has been scaled up to 3.9 per cent each in 2018 and 2019, which is 0.2 percentage points higher than its estimate in October. For 2017, it has raised its estimate for global growth by 0.1 percentage points to 3.7 per cent. “The revision reflects increased global growth momentum and the expected impact of the recently-approved US tax policy changes,” said IMF. (DS)

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