India’s economy is rising at the highest pace in the world, beating China’s estimated growth of 4.6% over the same period.
The International Monetary Fund revised India’s growth estimate upwards, from 6.5% in January to 6.8% on April 16, 2024. The reason for this is due to positive domestic demand conditions and an increasing working-age population. Thus, India remains the world’s fastest-growing major economy, surpassing China’s predicted growth of 4.6% over the same time.
Ahead of the IMF and World Bank’s annual spring meetings, the latest edition of the World Economic Outlook states that growth in India is expected to remain strong at 6.8% in 2024 and 6.5% in 2025. This reflects continued strength in domestic demand and a surge in the working-age population.
According to the January 2024 WEO Update, growth in Asia is expected to drop from 5.6% in 2023 to 5.2% in 2024 and 4.9% in 2025. At the same time, the IMF predicted India’s economic growth to be 6.5% in 2024 in its January update.
Statement by the IMF About Raised Population in India: Projection to 6.8%
The IMF says that they forecast China’s growth to decline from 5.2% in 2023 to 4.6% in 2024 and 4.1% in 2025. This is due to many factors, including tapering effects of fiscal stimulus and adjustments to spending levels post-pandemic.
On a broader scale, the rate of global growth, which is likely to reach 3.2% in 2023, will continue to hold steady in 2024 and 2025.
According to the IMF, the forecast for 2024 increased by 0.1 percentage points and 0.3 percentage points in the January 2024 WEO Update.
Statement by Pierre-Olivier Gourinchas, Chief Economist of the IMF
Policymakers should take steps toward greater economic flexibility, such as strengthening government finances and improving economic growth, said Pierre-Olivier Gourinchas, Chief Economist of the IMF.
In a blog post, Mr. Pierre assured, “Despite gloomy predictions, the global economy remains remarkably resilient, with steady growth and inflation slowing almost as quickly as it rose.”
The economist added, “Beginning with supply-chain disruptions following the pandemic, an energy and food crisis resulting from Russia’s invasion of Ukraine, and a notable spike in inflation. Also, a globally coordinated tightening of monetary policy had been dramatic.”
According to Pierre, by late 2022, global growth had dropped to 2.3% and median headline inflation had peaked at 9.4%. Growth this year is expected to remain stable at 3.2%, with median headline inflation declining from 2.8% to 2.4% next year. Moreover, he observed that most signs continue to point to a soft landing.
In conclusion, the IMF projects the population in India for 2024 to be 6.8%, reflecting the nation’s economic durability and global status. This upward trend creates opportunities for investors and policymakers.
Prioritizing sustainable development and inclusive growth is essential to India’s continued economic success and contribution to global stability. So, stay tuned to ScoopDose for further updates and views on India’s changing economic landscape.
