IMF Cuts India’s Growth rate from 7.6% to 6.6%

TNPSC Current Affairs January 17 2017

International Monetary fund (IMF) has cut down India’s Fiscal Growth rate from 7.7% to 6.6%, citing demonetization woes.

The International Monetary fund in its Latest World Economic Outlook said that "in India, the growth forecast for the current (2016–17) and next fiscal year were trimmed by 1 percentage point and 0.4 percentage point, respectively, primarily due to the temporary negative consumption shock induced by cash shortages and payment disruptions associated with the recent currency note withdrawal and exchange initiative,

As per the latest report India lost its no 1 position to China in fastest Growing Economy among emerging countries. IMF has downgraded India’s growth in 2016 is now estimated to be 6.6 % against 7.6 % earlier. In 2017 the growth rate will be 7.2 % against its previous estimate of 7.6%. India will revive its growth rate of 7.7 % in 2018 as per World Economic Outlook projection.

IMF said that the global growth rate for 2016 is now estimated as 3.1 %. It also said that lacklustre outturn in 2016, economic activity is projected to pick up in 2017 and 2018, especially in emerging market and developing economies.

About IMF:

International Monetary fund is an International Organisation located in Washington DC to promote global monetary and exchange stability,   secure financial stability, promote high employment and sustainable economic growth and reduce poverty. It is formed in 1945 with 29 members, currently it has 189 countries as members

Christine Lagarde is current Managing director of International Monetary Fund.