• UGI USER
  • Feb 01, 2024
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DITORIALRHAN IMF’S GROWTH FORECAST

Why in the News?

  • The International Monetary Fund (IMF) raised India’s growth forecast for FY25 to 6.5% from the earlier 6.3%.
Source: Trading Economics

Key Highlights:

  • The upgrade is attributed to the resilience in domestic demand, contributing to the momentum of growth.
  • India’s projected growth for 2024 and 2025 is 6.5%, with a 0.2 percentage point increase for both years.

Global Economic Outlook:

  • IMF revised the global economic growth forecast to 3.1% for 2024, up from 2.9% in the October update.
  • It anticipates a ‘soft landing’ for the global economy, with a marginal rise in growth to 3.2% in 2025.
  • While inflation is declining steadily, the pace of expansion remains slow, with potential turbulence ahead.
About IMF

·    The IMF consists of 190 member countries, with representation on its executive board based on financial importance.

·    It was established during a UN conference in Bretton Woods, New Hampshire, USA, in July 1944.

·    The conference aimed to create a framework for economic cooperation to prevent another Great Depression.

·    Membership in the IMF was a prerequisite for joining the International Bank for Reconstruction and Development (IBRD).