New Delhi, May 9: The Indian economy is expected to grow at 7.4 percent in the current fiscal and accelerate further to 7.8 percent as it recovers from the impact of demonetisation and GST roll out, IMF said today.
Asia continues to be the main engine of the world’s economy, accounting for more than 60 percent of global growth three-quarters of which comes from China and India alone, as per IMF’s Regional Economic Outlook: Asia and Pacific (REO).
“But there are risks and challenges ahead, including from a tightening of global financial conditions, a shift toward inward-looking policies, and over the longer run population aging, slowing productivity growth, and the rise of the digital economy,” it said.
Asia is expected to grow at 5.6 percent this year and next, it said, adding that the outlook is supported by strong global demand, as well as still accommodative policies and financial conditions.
“In India, growth is forecast to rebound to 7.4 percent in FY 2018/19 as the economy recovers from disruptions related to the currency exchange initiative and the rollout of the new Goods and Services Tax,” it said.
China, it said, is projected to grow at 6.6 percent in the current year which will moderate to 6.4 percent next year.
Noting that present rates of inflation in Asia are some of the lowest in decades, it said, it has seen some upward movement since September 2017 on the back of rising oil prices.