With Barely days left for the presentation of the Union budget for FY 2024-25, the international monetary fund has revised the growth from 6.8 percent to 7 percent.
This development comes around the time, when IMF has predicted global growth, to be 3.2 percent. In addition, it has revised its prediction for downward for Japan and United states of America.
It has cited the reasons like slower start of the year and disruption of temporary supply behind this static growth.
In addition, the IMF has also thrown light on several risks plaguing the global economy. These include factors like inflation, tensions in trade and uncertainty regarding policies.
As for Asia, Countries like China & India are predicted are anticipated to be main centres of growth. The prediction for China has been set upward to 5.0% this year. Owing to its revival of private consumption and strong exports.
But notably, IMF has warned, that China is still in risk due to weak trust and unsolved problems of property sector. Thus, it might lead to greater dependency on external sector.
Reason Behind Its Revision?
This revision is done on the expected improvement in private consumption, especially in country’s rural areas.
As for FY 2025-26, the financial agency still kept the estimate at 6.5% growth for India’s GDP. It still remains the same.
But the financial agency still underscores the importance of cautious monetary policy adjustments to deal with the issues like sticky inflation. Which can deteriorate due to start of trade or geopolitical tensions.
