IMF Projects Highest Growth For India In 2024-25; Negates Possibility Of Global Recession

As the United States has recovered to surpass its pre-pandemic growth levels and India's development prospects appear bright, the International Monetary Fund (IMF) has raised its forecast for the global economy.

Despite its long-term forecast being the lowest in decades, the IMF believes that the global economy will be resilient overall.

A lot of Europe will see a more gradual economic recovery than the United States, according to the IMF, which has also predicted that China's economic development will slowdown this year.

Notably, India's growth expectations were boosted by 30 basis points to 6.8 per cent by the IMF, highest in the report. This stance is contrast to China, where growth is expected to contract from 5.2 per cent to 4.6 per cent this year.

According to the IMF's World Economic Outlook, which was published on Tuesday, the global economy will expand by 3.2 per cent in 2024 compared to the January projection, it was 0.1 per cent higher.

A global recession is defined as global growth falling below 2 per cent, and the IMF stated that there is only a 10 per cent possibility of it happening.

However, the IMF's five-year growth prediction of 3.1 per cent is the lowest in decades, notwithstanding the positive annual outlook. This year, the US economy is expected to grow by 2.7 per cent, an increase of 0.6 per cent over the previous IMF estimate.

Global inflation is forecast to decline steadily, from 6.8 per cent in 2023 to 5.9 per cent in 2024 and 4.5 per cent in 2025, with advanced economies returning to their inflation targets sooner than emerging market and developing economies. Core inflation is generally projected to decline more gradually, stated report.