IMF cuts India’s growth projection, but it still retains world’s top spot

July 16, 2018
United Nations: The International Monetary Fund (IMF) cut India’s growth projections for this fiscal year to 7.3 per cent and for the next to 7.5 per cent on Monday, although the country will still retain its top spot in the global growth league.

The World Economic Outlook (WEO) Update reduced by 0.1 per cent the projections made in April for this year and by 0.3 per cent for 2019, citing the impact of higher oil prices and the likelihood of monetary policy tightening.

Maury Obstfeld, IMF’s director of the Research Department, said that the rise in oil prices due to supply disruptions and geopolitical tensions have harmed importers like India.

Releasing the Update at the IMF headquarters in Washington, he said: “We continue to project global growth rates of just about 3.9 per cent for both this year and next, but judge that the risk of worse outcomes has increased, even for the near term.”

The report said that for such a scenario the “possible triggers include rising trade tensions and conflicts, geopolitical concerns, and mounting political uncertainty”.

Citing the tariff increases by the US and retaliation by other countries, it said they “could derail the recovery and depress medium-term growth prospects”.

The Update kept the growth projections for China unchanged at 6.6 per cent for this year and 6.4 for 2019, and for the US at 2.9 per cent for 2018 and 2.7 per cent next year.

Obstfeld said: “The dollar has already appreciated broadly since April, and financial conditions facing emerging and frontier economies have become somewhat more restrictive.”

The Update said the dollar has appreciated by 5 per cent since February.

As for reducing the projections for India, it said they reflect the “negative effects of higher oil prices on domestic demand and faster than-anticipated monetary policy tightening due to higher expected inflation”.

The latest projections are still markedly higher than the growth rate of 6.7 per cent in 2017 and the report said it was because “drags from the currency exchange initiative and the introduction of the goods and services tax fade”.

The IMF Update is in line with the World Bank’s Global Economics Prospects projections issued last month.

However, the IMF numbers are lower than the United Nations growth estimate of 7.5 per cent for this year and 7.6 per cent for the next year made in May in the World Economic Situation and Prospects.(IANS)

Masked looters attack Apple Store in US, steal iPhone 15 devices

San Francisco: A number of masked people barged into an Apple store in US's Philadelphia, and fled with the latest products, including iPhone 15 devices, iPads, and others. Videos of...

Spl CBI team in Manipur to expedite probe into killing of two students

Imphal: A special CBI team led by its Special Director Ajay Bhatnagar arrived in Imphal on Wednesday to expedite the probe into the murder of two young students, officials said....

Jaishankar refutes Trudeau’s allegations on Nijjar’s killing, says it’s not India’s policy

New Delhi: In a rebuke to the allegations levelled by Canadian Prime Minister Justin Trudeau over the involvement of India in the murder case of Canada-based pro-Khalistan hardliner Hardeep Singh...

Cauvery water dispute: CWRC order a ‘death sentence’ for K’taka, says Yediyurappa

Bengaluru: Taking exception to the Cauvery Water Regulatory Committee's (CWRC) order to release 3,000 cusec of Cauvery water to Tamil Nadu till October 15, former Karnataka Chief Minister B.S. Yediyurappa...

Alliance with BJP: Another minority leader in K’taka quits JD(S)

Bengaluru: Vice-president from Tumakuru district, considered a stronghold of the party, resigned from his post in protest against the party’s alliance with BJP on Wednesday. S. Shafi Ahmad, a prominent...

‘Senior bureaucrats not listening’: Delhi govt seeks urgent hearing against Services Act in SC

New Delhi: The Delhi government on Wednesday told the Supreme Court that senior bureaucrats were not carrying out orders of the elected government while urging for an urgent hearing on...

FBI warned prominent US Sikhs of threats after Nijjar’s killing in Canada

Washington, Sep 26 (IANS) The Federal Bureau of Investigation (FBI) warned at least three Americans active in the Sikh community that their lives were in danger in the immediate aftermath...

Waheeda Rehman to be feted with Dadasaheb Phalke Lifetime Achievement Award

Mumbai: Veteran actress and dancer Waheeda Rehman, who is known for films like ‘Guide’, ‘Pyaasa’, ‘Sahib Bibi Aur Ghulam’, ‘Delhi-6’, ‘Kaagaz Ke Phool’ and several others, is being honoured with...

Manipur: 34 injured during massive students’ protest against killing of 2 students by armed men

Imphal: At least 34 students, including girls, were injured after hundreds of students took to the streets in Imphal on Tuesday to protest against the killing of two young students...

In updated travel advisory, Canada asks citizens to ‘remain vigilant’

Toronto: Updating travel advisory for its citizens in India, Canada has asked them to "remain vigilant and exercise caution" in the wake of a diplomatic row over the killing of...

Centre has implemented schemes in mission mode in past 9 years, says PM Modi

New Delhi: Prime Minister Narendra Modi on Tuesday said that in the last nine years, the government has implemented schemes in mission mode, thus paving the way for achieving even...

26/11 case: Mumbai court to take up fresh charge sheet against terror accused Rana

Mumbai: Five months after a US court ordered the extradition of Pakistani-Canadian businessman Tahawwur Hussain Rana to India for his connections in the Mumbai 26/11 terror attacks, the city police...

Read Previous

Modi lambasts Mamata regime, says Bengal looking to end oppression

Read Next

Nation–J&K says FIR against Major Aditya justified; SC to hear final arguments on July 30

Leave a Reply

Your email address will not be published.

WP2Social Auto Publish Powered By : XYZScripts.com