India's GDP to be 4.8% in 2019-20: IMF

Dagas, Ta. January 20, 2020, Monday

The International Monetary Fund (IMF) today reduced the growth rate for the global economy, including India. The IMF has reduced India's economic growth estimate to 4.8 percent for the financial year 2019-20. The IMF had projected GDP growth of 6% in October.

According to the IMF, the slowdown in India also reduced the estimate of the growth rate of the global economy. However, economic growth is projected to increase over the next financial year. The IMF said in a statement that economic growth is projected to be 6.5 percent in FY 2020-21.

According to the latest IMF report, global economic growth will be 2.9 percent in 2019, 3.3 percent in 2020 and 3.4 percent in 2021. Prior to the inauguration of the World Economic Forum's annual meeting, IMF Managing Director Christina Georgiwa said that the only simple advice to policy makers is to implement all the solutions that can result.

Georgiwa has stated that the fundamental issues of trade system reform are currently unresolved. IMF chief economist Geeta Gopinath said the risks to the economy have been reduced since October as the US-China trade agreement moves forward.

He said that due to the decline in India's economic growth projections, the two-year growth rate in the world was reduced by 0.1 per cent and 0.2 per cent the following year. The IMF has reduced India's economic growth estimate to 4.8 percent for the financial year 2019-20. The main reason for this is the problem in the non-banking finance sector and decreasing demand in villages.