IMF reaffirms that India will be the fastest-growing major economy in 2018

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The International Monetary Fund, IMF reaffirmed today that India will be the fastest-growing major economy in 2018, with a growth rate of 7 (point)4 per cent that rises to 7(point)8 per cent in 2019 with medium-term prospects remaining positive.

Highlights

The IMF’s Asia and Pacific Regional Economic Outlook report said that India was recovering from the effects of demonetisation and the introduction of the Goods and Services Tax.

It said the recovery is expected to be underpinned by a rebound from transitory shocks as well as robust private consumption.

The report said, Medium-term consumer price index inflation is forecast to remain within but closer to the upper bound of the Reserve Bank of India’s inflation-targeting band of four per cent with a plus or minus two per cent change.

It said, the consumer price increase in 2017 was 3.6 per cent and projected it to be five per cent in 2018 and 2019. Overall, the report said that Asia continues to be both the fastest-growing region in the world and the main engine of the world’s economy.

Background

The International Monetary Fund (IMF) is an organization of 189 countries, working to foster global monetary cooperation, secure financial stability, facilitate international trade, promote high employment and sustainable economic growth, and reduce poverty around the world.

Created in 1945, the IMF is governed by and accountable to the 189 countries that make up its near-global membership.

Fast Facts

  • Membership: 189 countries
  • Headquarters: Washington, D.C.
  • Executive Board: 24 Directors each representing a single country or a group of countries
  • Staff: Approximately 2,700 from 148 countries
  • Total quotas: US$668 billion (as of 9/13/16)
  • Additional pledged or committed resources: US$ 668 billion
  • Committed amounts under current lending arrangements (as of 9/8/16): US$159 billion, of which US$144 billion have not been drawn (see table).
  • Biggest borrowers (amounts outstanding as of 8/31/16): Portugal, Greece, Ukraine, Pakistan
  • Biggest precautionary loans (amount agreed as of 9/8/16): Mexico, Poland, Colombia, Morocco
  • Surveillance consultations: 130 consultations in 2013 and 132 in 2014, and 124 in 2015
  • Capacity development: 274 person years in FY2013, 285 in FY2014, and 288 in FY2015
  • Original aims
    • promote international monetary cooperation;
    • facilitate the expansion and balanced growth of international trade;
    • promote exchange stability;
    • assist in the establishment of a multilateral system of payments; and
    • make resources available (with adequate safeguards) to members experiencing balance of payments difficulties.
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