India has successfully navigated multiple shocks over the last several years, said Krishna Srinivasan, Director, Asia and Pacific Department, at the IMF. It's emerging to be one of the fastest major economies in the world. "In fact, for this year, for 2024-25, we project growth at 6.8 per cent led by private consumption and public investment. Inflation is coming down gradually. It's now below 5 per cent," he said.
Markets have already slashed the amount of easing expected this year to fewer than two rate cuts, a sea change from about six cuts predicted at the beginning of the year. The first rate cut is still expected in September, although the market's confidence in that has declined. Read more:
The International Monetary Fund (IMF) has revised its forecast for India's economy, predicting a 6.8% growth in FY25 and 6.5% in 2025. This follows upward revisions by other international lenders, which predict strong domestic demand and a revival in the rural economy. The IMF also revised its FY24 growth forecast to 7.8%, higher than the government's estimate of 7.6% for the year.
A report by the Bretton Woods Committee's Multilateral Reform Working Group suggests that the World Bank and IMF should adopt a gap-based approach to tackle climate challenges. The report identifies three gaps in the public sector's approach: governance, implementation, and accountability.
The spring meetings of the International Monetary Fund and the World Bank are due to open Tuesday, help countries combat climate change, and assist the most indebted nations. In many ways the problems now are no less daunting, particularly as the World Bank and IMF -- which just reappointed its managing director Kristalina Georgieva to a second five-year term -- seek a path forward on climate change.
The spring meetings of the International Monetary Fund and the World Bank are due to open Tuesday, help countries combat climate change, and assist the most indebted nations. In many ways the problems now are no less daunting, particularly as the World Bank and IMF -- which just reappointed its managing director Kristalina Georgieva to a second five-year term -- seek a path forward on climate change.
The US's robust economic growth, while beneficial globally, poses risks due to high inflation and tight monetary policy. Uncertainty surrounds whether growth stems from positive factors or fiscal deficits. IMF and World Bank meetings will likely focus on this. Fed's cautious approach reflects concerns about persistently high inflation. International reactions vary, with some central banks facing limitations if US inflation continues.
Finance Minister Muhammad Aurangzeb is due to leave on Sunday for Washington to attend the IMF-World Bank spring meeting, where he will start negotiations for Pakistan's 24th long-term IMF bailout. Aurangzeb briefed Prime Minister Shehbaz Sharif about the new IMF programme on Friday, the government said in a statement. Read more:
The Executive Board of the International Monetary Fund (IMF) on Friday selected Kristalina Georgieva to serve as IMF Managing Director for a second five-year term starting on October 1, 2024.
Banga told reporters ahead of the World Bank and International Monetary Fund spring meetings that the development lender had reduced its average 19-month project approval time by about three months and would cut it by another three months by the middle of next year.
The ADB said the economy shrank as floods, uncertainty, and disrupted external support caused public investment to plunge and private investment and industry to contract. "Inflation reached a 5-decade high as supply disruption and currency depreciation propelled increases in food and energy prices," the agency said. Read on to know more:
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