New Delhi: The International Monetary Fund (IMF) forecasted India to grow at 7 per cent in FY25 and 6.5 per cent in FY26 led by an upsurge in private consumption as well as investment. While pent up demand from the COVID-19 pandemic seems to have moderated, a better-than-expected agricultural season as well as a continued expansion of investment in public infrastructure. Finance Minister Nirmala SItharaman exhorted global leaders to consider alternative growth strategies as well as job creation which exists apart from the manufacturing-led development trajectory.
The global economy has shown resilience. But at 3.2% projected for 2024 and 2025, global growth remains below historical average. Reforms that foster productivity can help boost growth over the medium term. More in our latest World Economic Outlook. https://t.co/sDv9tK6r0D pic.twitter.com/XoLWwN8Tcp
— IMF (@IMFNews) November 2, 2024
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IMF’s Asia growth forecast
The IMF forecasted a slowdown in Asia’s growth during calendar years 2024 and 2025, owing to a slowdown post-pandemic recovery. While Asia and the Pacific region are expected to contribute 60 per cent of global growth depending on how uncertainties related to the global economy as well as geopolitics pan out.
Asia could benefit from a pivot towards tradeable services, away from manufacturing. Currently, nearly 50 per cent of Asia’s workforce is employed in the services sector, compared to 22 per cent in 1990.
OUT NOW: The Regional Economic Outlook for Asia and Pacific is now available! Read the blog (https://t.co/jy8e1T44XD) and the full report (https://t.co/cBJdDNdLRK). pic.twitter.com/2FSNLJxHCR
— IMF (@IMFNews) November 1, 2024
IMF global growth forecast
The IMF suggested that global fiscal and monetary policies must undergo a triple pivot to support stability and long-term economic growth. Inflation moderated without a recession indicating an easing up of supply disruptions. While the labour market is headed for a slowdown, global growth was expected to grow at 3.2 per cent in FY25, said the IMF.
A ‘triple pivot’ in monetary, fiscal, and structural policies is needed to maintain stability and support long-term growth. For more, read the blog (5/5) https://t.co/nHWbvqEgcO pic.twitter.com/3WLd14o7H6
— Pierre-Olivier Gourinchas (@pogourinchas) October 22, 2024
