IMF projects India as fastest growing economy in 2024

Washington: The International Monetary Fund (IMF) in its growth forecast for 2024, has predicted that India will emerge as the fastest-growing economy yet again with a robust growth of 6.5 per cent. On the other hand, other major economies will be showing modest growth. As per the report, the US will grow at 2.1 per cent, Germany will grow at 0.5 per cent, France at 1 per cent, Japan at 0.9 per cent and China at 4.6 per cent.

The IMF said that with disinflation and steady growth, the risks to global growth are broadly balanced and there is a possibility of a ‘soft landing’. “Global growth is projected at 3.1 per cent in 2024 and 3.2 per cent in 2025, with the 2024 forecast 0.2 percentage point higher than that in the October 2023 World Economic Outlook (WEO) on account of greater-than-expected resilience in the United States and several large emerging market and developing economies, as well as fiscal support in China,” the IMF statement read.
It said that faster disinflation could lead to further easing of financial conditions and stronger structural reform momentum could bolster productivity with positive cross-border spillovers. However, it also highlighted that a spike in new commodity price spikes from geopolitical shocks — including continued attacks in the Red Sea — and deepening property sector woes in China could also cause growth disappointments.