IMF Chief Kristalina Georgieva

IMF Chief Kristalina Georgieva Says The Economic Slowdown in India is Temporary

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The International Monetary Fund’s (IMF) chairperson, Kristalina Georgieva, said Friday that the recession of India’s economy is temporary and it will be seen to increase in the coming months. Speaking at the World Economic Forum in Davos, Crystalina said the world looks much better than October 2019 in January 2020.

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This is seen as the end of the trade war between the United States and China. Significantly, negotiations and trade between China and the United States have ended in the first phase. This suggests that in the coming days the global economy will develop rapidly. This trade agreement will have a positive impact on all countries of the world including India.

The global economic growth rate of 3.3 percent is insufficient

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However, Cristalina said that 3.3 percent growth is insufficient for the global economy. We think that the government needs to look at the fiscal deficit and make a lot of reforms so that the growth rate can be seen.

The International Monetary Fund also lowered its growth forecast for India this fiscal. The IMF released this estimate at a meeting of the ongoing World Economic Forum in Davos.

India is the biggest cause of sluggishness – Gita Gopinath

Earlier, the chief economist of the IMF, Geeta Gopinath, said that the impact of the recession in many countries including India is being seen globally. Gopinath also said that the pace of global development in 2020 is very uncertain. The reason for this is dependent on the result of the growth of stressful economies like Argentina, Iran and Turkey, and the emerging and under-developing countries such as Brazil, India, and Mexico.

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According to estimates, India’s growth will grow by 4.8 percent in the current financial year. It is expected to grow to 5.8 percent in 2020 and 6.5 percent in 2021. The IMF says India needs to take big steps as soon as possible to get the economy back on track. In this context, the IMF said that the Indian economy is one of the leading economies in the world, so India needs to act fast.

The currency fund has said that India’s domestic demand has fallen faster than expected. This is due to the pressure on NBFCs and the softening of debt growth. Gopinath said that due to the softening of the non-banking financial sector and the weak growth of rural incomes, the forecast for India’s economic growth has declined.

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