Washington. The International Monetary Fund (IMF) said on Tuesday that India’s gross domestic product (GDP) growth rate is expected to decline from 8.2 percent in 2023 to seven percent in 2024. It will further reduce to 6.5 percent in 2025. The IMF said that the pent-up demand caused by the Covid pandemic has ended as the economy is taking shape again with its potential.
Regarding the global economy, the IMF said that the fight against inflation has been largely won, although price pressure remains in some countries. Core inflation reached a high of 9.4 percent on an annual basis in the third quarter of 2022, after which it may fall to 3.5 percent by the end of 2025. If this happens, it will be lower than the average level of 3.6 percent between 2000 and 2019.
In its annual World Economic Outlook released here, the IMF estimated that global economic growth will remain stable at 3.2 percent in 2024 and 2025. According to IMF chief economist Pierre-Olivier Gourinchas, the global economy has been unusually aggressive in controlling inflation. He said that the growth rate of the global economy will remain more or less stable at 3.2 percent in 2024 and 2025. “However, the growth rate of some low-income countries and developing economies may decline significantly.”