IMF slashes India GDP to 4.8 for 2019-20,cuts global growth rates too

Share this post on:

India’s economic growth in 2020 and 2021 could be 5.8 percent and 6.5 percent.

New Delhi / Davos, 20 January: After the United Nations (UN), the International Monetary Fund (IMF) has also drastically cut the projected economic growth rate for the global economy including India on Monday. The IMF has stated that India’s GDP growth rate in FY 2019-20 will be just 4.8 per cent.

The IMF had projected a growth rate of 6.1 percent in October. At the same time, the Monetary Fund has said that due to slowdown in India and other emerging countries like it, the growth forecast of the world has had to be reduced.

However, the economy of India is projected to grow from the next financial year. The International Monetary Fund said that economic growth in 2020 and 2021 could be 5.8 per cent and 6.5 per cent. According to the latest IMF estimates, the global growth rate will be 2.9 percent in 2019, 3.3 percent in 2020 and 3.4 percent in 2021.

It is noteworthy that the IMF released this estimate during the ongoing World Economic Forum (WEF) meeting in Davos. The IMF’s World Economic Outlook report states that domestic demand has fallen sharply due to difficulties in India’s non-banking financial sector and the pace of credit growth has slowed.