• UGI USER
  • Jul 17, 2024
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IMF RAISES INDIA’S GDP GROWTH FORECAST TO 7%

Why in the news?

  • The IMF has raised India’s GDP growth forecast by 20 basis points to 7% for FY25.
  • Improved consumption, especially in rural areas, is expected to support growth.
  • The FY24 growth projection remains at 6.5%.
source:medium

Global Economic Outlook:

  • The IMF notes that major advanced economies are showing signs of alignment as output gaps close.
  • Growth in China is expected to moderate to 3.3% by 2029.
  • Global growth is projected to be 3.2% in 2024 and 3.3% in 2025.
About International Monetary Fund (IMF):

About:

  • The IMF has 190 member countries, with executive board representation based on financial significance.
  • Established during a UN conference in Bretton Woods, USA, in July 1944.
  • Aimed to prevent economic crises like the Great Depression.
  • Membership was required to join the International Bank for Reconstruction and Development (IBRD).
  • Provides financial assistance and advice to member countries.
  • Conceived at Bretton Woods Conference, July 1944.

Objectives:

  • Foster global monetary cooperation and stability.
  • Ensure financial stability and crisis assistance.
  • Facilitate international trade with stable currencies.
  • Promote sustainable growth and employment.

Board of Governors:

  • Each member country has one Governor and one Alternate Governor.
  • India’s Finance Minister is the ex-officio Governor; RBI Governor is the Alternate Governor.

Special Drawing Rights (SDRs):

  • International reserve asset to supplement member countries’ reserves.
  • Total global allocations: USD 293 billion.
  • Members can voluntarily exchange SDRs for currencies.

Reports Published:

  • World Economic Outlook (WEO)
  • Global Financial Stability Report (GFSR)
  • Fiscal Monitor (FM)
  • Regional Economic Outlooks

Associated Article:

https://universalinstitutions.com/imf-forecasts-indias-economy-to-grow-6-8-this-fiscal-year/