The International Monetary Fund or IMF has labelled Bharat as “one of the strong performers” in its latest report, forecasting a growth rate of 6.5 per cent for the nation in 2024. This announcement positions Bharat as one of the fastest-growing economies globally, outpacing China’s projected growth rate of 4.6 per cent for the same period.
Speaking at a press conference, IMF chief economist Pierre-Olivier Gourinchas remarked, “Indeed, Bharat is one of the strong performers. We had a fairly sharp revision in the Fiscal Year 2023 to 2024, the one that is ending, and that has just ended. Then we have 0.3 percentage point upgrade for Fiscal Year 2024 to 2025. So, Bharat is doing quite well.”
The IMF’s World Economic Outlook, released ahead of the annual spring meetings of the IMF and the World Bank, highlights Bharat’s robust growth trajectory, projecting a growth rate of 6.8 per cent in 2024 and 6.5 per cent in 2025. This positive outlook is attributed to the continued strength in domestic demand and a rising working-age population.
While Bharat maintains its strong growth momentum, the IMF notes a moderation in growth for emerging and developing Asia, with a slight upward revision compared to previous forecasts. China’s growth is expected to slow down, reflecting easing post-pandemic effects and persisting weaknesses in the property sector.
Global growth, estimated at 3.2 per cent in 2023, is anticipated to continue at the same pace in 2024 and 2025. IMF Research Department Division Chief Daniel Leigh highlighted the moderation in growth as partly influenced by tightening monetary and fiscal policies aimed at managing inflation.
Leigh asserted, “We see inflation coming down – is in the target range 4.6 this year, 4.2 next year. There are upside risks to this forecast. They could be further strengthened in private demand. Also, an upside comes from the potential for reforms that would liberalise foreign investment and really boost exports and boost jobs and labour force participation. So it’s a very strong outlook, and there’s a balanced risk outlook.”
