International Monetary Fund expects India's economy to grow at 7.4% in 2018

Tuesday, 17 Apr, 2018

"Business confidence is likely to gradually firm up with the change in the political leadership, but growth prospects remain weighed down by structural bottlenecks", the global lender said in its latest World Economic Outlook published in Washington.

In general, economy of the CIS member countries will grow 2.2 percent in 2018 and 2.1 percent in 2019, according to analysts of the fund.

The International Monetary Fund (IMF) has retained its forecast for Ukraine's GDP growth in 2018 at 3.2%, while it reviewed downwards the forecast for 2019 to 3.3% from 4%, according to the World Economic Outlook published on Tuesday.

Trump is pushing China to reduce its massive US$375bn trade surplus with the United States by US$100bn and change its policies that he says force American companies to hand over their technology and intellectual property to Chinese companies.

India is expected to outpace China, registering 7.4 percent growth this year.

China with 6.9 per cent growth jumped marginally ahead of India in 2017.

Beyond that horizon, it was more pessimistic, projecting global growth will fade as central banks tighten monetary policy, the USA fiscal stimulus subsides and China's gradual slowdown continues.

"However, advancement of the outstanding reforms is critical for reinvigorating economic growth and making it more inclusive", said the International Monetary Fund.

As reported, the World Bank remained unchanged its forecast for Ukraine's GDP growth in 2018-2019 at 3.5% and 4% respectively.

The lending agency has kept its forecast for worldwide growth this year at 3.9 percent, which would be its fastest pace since 2011.

"Over the medium term, growth is expected to gradually rise with continued implementation of structural reforms that raise productivity and incentivise private investment", the WEO said.

The report added that corporate debt overhang and associated banking sector credit quality concerns "exert a drag on investment in India".

Higher public investment is among the reasons for the forecast's revision, according to the report.

In Turkey, limiting balance sheet currency mismatches and the high exposure to foreign exchange risk are urgent priorities, especially with monetary policy normalization under way in the United States and the United Kingdom (and the resulting possibility of a shift of capital flows away from emerging market economies), the IMF warned. "However, recapitalization should be part of a broader package of financial reforms to improve the governance of public sector banks, and banks' debt recovery mechanisms should be further enhanced", it said.