IMF Forecasts: India and Three Others Fuel Global Economic Expansion
The rapid growth of the Indian economy is surpassing. It is assumed that by 2027, India will stand in the 3rd position in the largest economies in the world. Now, the latest forecast from The International Monetary Fund is again showcasing the supremacy of the Indian Economy. On Wednesday, March 6th, The International Monetary Fund predicted that India, along with other three countries will contribute significantly to global economic growth over the next 5 years. The countries that will be together contributing to global economic growth are China, the United States of America, and Indonesia.
As per the latest forecast, these 4 countries are expected to significantly account for more than half of the economic expansion of the world during this period. It is not the first time that the IMF has made such a prediction as even in September 2023, IMF reaffirmed a similar prediction. The prediction has been shared on X (Formerly Twitter) that reads, “Four countries– China, India, the US and Indonesia– are set to contribute more than half of the world’s economic growth over the next five years, according to IMF forecasts.
Earlier the Reuters report shared the same opinion of the IMF which they released in their World Economic Outlook. At that time, the IMF said that the economy of India is likely to increase at least 6.5% in the financial year which will be starting from 1st April 2024 and at a similar kind of pace the year after. Furthermore, the revised projections of the IMF, state that the GDP growth in the world’s 5th largest economy at that time of the current financial year to 6.7% from 6.3% in the month of October.
The report’s robust growth forecast for India coincided with a prediction that growth in “developing Asia” as a whole would slow, from an estimated 5.4% in 2023 to 5.2% in 2024 and 4.8% in 2025. The IMF report states that “Growth in India is projected to remain strong at 6.5% in both 2024 and 2025, with an upgrade from October of 0.2 percentage point for both years, reflecting resilience in domestic demand.” In the latest economic review report, the projection of the IMF was 6.5% lower than the expectation of the federal government of India which was expecting 7% growth in the economy in the next financial year.
The estimation of the Indian economic growth came after the presentation of the interim budget of the existing government. Now the latest edition of the report indicates that the GDP growth of India will be at 6.8% in the Fiscal Year of 2025. On 6th March, Rating agency Crisil also projected their report in which they state that the real GDP growth of India will moderate to 6.8 per cent in next year from the 7.6 percent expected in FY2024. The agency further added that despite the moderate economic growth rate, India will continue to be in the race for the fastest-growing large economy.
Dharmakirti Joshi, the chief economist of Crisil stated that it is expecting that the Central Bank of India will cut rates by 0.50-0.75% point in the next fiscal year. As of now, the current GDP size of India is $3.6 trillion and standing in the 5th position in the largest economy in the world. As of now, the US is standing in 1st position, the US, China, Japan and then Germany.