Why in news?
IMF has released the latest update of the World Economic Outlook ahead of the World Economic Forum.
What are highlights?
- India - India is projected to grow at 7.4% in FY19 as against 6.7% this year.
- This is projected to gain pace to grow at 7.8% in FY20.
- India has slipped behind China this year in tax collections owing to disruption caused by demonetisation and GST.
- The forecast will help India regain the tag of fastest-growing major economy, backing the government's economic revival theme.
- Notably, stock markets have been surging recently, hitting successive records.
- This is encouraged by the economic revival prospects and corporate earnings optimism, apart from other factors.
- Other countries - In the current year, China will grow 6.8%, just ahead of India but will slip to 6.6% next year.
- The US is forecast to grow 2.7% and 2.5% in 2018 and 2019, respectively, slightly higher than earlier estimates.
- Global - The IMF noted that 2017 saw the best global growth in seven years.
- The global economy is expected to grow 3.9% this year, faster than 3.7% forecast earlier in October.
- The revision in global growth forecasts reflects increased global growth momentum and positive impact of US tax policy changes.
- Shared priorities across all economies include implementing structural reforms to boost potential output and making growth more inclusive.
Source: Economic Times
