Asia

Growth slump in India temporary: IMF chief

DAVOS: IMF chief Kristalina Georgieva on Friday said growth slowdown in India appears to be temporary and that she expects the momentum to improve going ahead. The world appears a better place in January 2020 compared to what it was when IMF announced its World Economic Outlook in October 2019, she said at the World Economic Forum (WEF) 2020 here.
She said the factors driving this positive momentum include receding trade tension after the US-China first phase trade deal and synchronised tax cuts. She, however, said 3.3% is not a fantastic growth rate for the world economy. “It is still sluggish growth. We want fiscal policies to be more aggressive and we want structural reforms and more dynamism,” the IMF MD said.
On Monday, the fund lowered growth estimate for the world economy to 2.9% for 2019, citing “negative surprises” in few emerging market economies, especially India. The IMF also revised downwards its forecast for India to 4.8% for 2019-20.
On emerging markets, Georgieva on Friday said they are moving forward. “We had a downgrade in one large market India but we believe thats temporary. We expect momentum to improve further. There are also some bright spots likRead More – Source

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