The IMF has maintained its GDP growth forecast for India at 7% for FY25 and 6.5% for FY26.
Banking & Finance
On October 22, 2024, the International Monetary Fund (IMF) published its latest report titled "October 2024 World Economic Outlook (WEO): Policy Pivot, Rising Threats." In this report, the IMF has kept India's Gross Domestic Product (GDP) growth forecast at 7% for Financial Year 2024-25 (FY25) and 6.5% for FY26.
- According to the report, India's growth outlook is expected to slow from 8.2% in FY24 to 7% in FY25. This change is attributed to the exhaustion of pent-up demand that built up during the COVID-19 pandemic as the economy adjusts to its potential.
Main Points:- (i) The report also estimates that global growth will remain stable at 3.2% in both 2024 and 2025. However, the global growth rate for 2025 has been slightly reduced by 10 basis points (bps) from 3.3% to 3.2%.
(ii) Additionally, the report projects India's headline inflation rate to be 4.4% for FY25 and 4.1% for FY26.
About the International Monetary Fund (IMF)
MD : Kristalina Georgieva
Headquarters: Washington, D.C.
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