The International Monetary Fund (IMF) forecasts that the Indian economy will reach a growth rate of 7.5% in 2020.
The IMF assesses that this South Asian nation continues to be the largest economy with the fastest growth in the world.
The IMF provides these forecasts based on the assessment that investment and consumer spending have been in a period of strong recovery, in the context of the Indian Government adopting an open monetary policy stance broader as well as favorable financial policies, thereby helping create momentum for the economy.
In 2018, India’s economic growth reached 7.1%, compared with 6.6% of China’s growth. The IMF report stated that India needs to continue to implement reforms in restructuring and restructuring as well as efforts to cut public debt to ensure economic growth prospects.
Also in the World Economic Outlook 2019 report, the IMF lowered its forecast for world growth in 2019 from 3.5% to 3.3%. This is the second time in the past four months that this global multilateral financial institution has lowered its forecast for global economic growth, arguing that the world economy has lost its momentum aftershocks from Britain’s departure. The European Union (EU), also known as Brexit, increased trade tensions as well as tighter financial conditions.
The IMF warns that the global economy is facing a “sensitive time”, affected by risks such as weak economic recovery in the context of trade tensions, Brexit issues and another factor. However, the IMF predicts global growth will increase to 3.6% in 2020, thanks to positive factors, including the US-China trade agreement.
The IMF also significantly reduced its growth forecast for the US economy in 2019 to 2.3% compared to the 2.5% forecast made in January 2019. The IMF even lowered its growth forecast for the world’s largest economy to 1.9% in 2020.
In addition, the IMF predicts that China’s economy will increase by 6.3% and 6.1% respectively in 2019 and 2020. In the Eurozone, the IMF also dropped sharply. growth is forecasted to be 1.3% in 2019 and 1.5% in 2020, of which Germany and Italy are the two most affected economies with German growth of only 0.8 % while that of Italy is 0.1%.