India’s Growth Spurt: IMF Pegs 2024 Expansion at 6.8%

by Antariksh Singh

In a recent revelation from the International Monetary Fund (IMF), the global economy is gearing up for what experts term a “soft landing,” characterized by stable growth and moderate inflation. The IMF’s World Economic Outlook, unveiled ahead of the annual spring meetings with the World Bank, unveils a promising trajectory underpinned by diverse factors.

India, heralded as a beacon of development, shines brightly in this forecast. Citing an increasing working-age population and robust domestic demand, India’s growth projections have soared. This comes as a boon to the country’s aspirations and global economic optimism.

The IMF’s revisions depict a landscape of gradual but steady growth. Global growth forecasts have been adjusted upwards to 3.2% in 2024, building upon the momentum of 3.1% in the preceding year. Such optimism extends through 2025, with a consistent growth rate of 3.2% anticipated for the third consecutive year.

A standout contributor to this global surge is the United States, where strong growth propels the IMF to revise its 2024 expectations from 2.1% to an impressive 2.7%. This upward trend signals a promising trajectory for the world’s largest economy.

However, amidst this optimism, concerns linger over inflation. With advanced economies witnessing a tapering effect due to higher interest rates, global inflation is expected to recede from 6.8% in 2023 to 5.9% in 2024, further declining to 4.5% in 2025. While persistent concerns loom, the IMF maintains a cautious yet optimistic outlook.

In Asia, the engine of global economic growth, a nuanced picture emerges. Emerging and developing Asia, while experiencing a slight dip from 5.6% growth in 2023 to 5.2% in 2024, retains a resilient stance with a projected 4.9% growth in 2025. Notably, China, a key player in the region, is expected to witness a slowdown from 5.2% growth in 2023 to 4.6% in 2024 and 4.1% in 2025. Factors such as waning post-pandemic consumption boosts and persisting weaknesses in the property sector contribute to this deceleration.

As the global economy braces for the envisioned “soft landing,” India’s ascendancy stands as a testament to the multifaceted dynamics shaping global growth. With India’s narrative of burgeoning demographics and robust internal demand converging with broader economic trends, the world anticipates a future marked by resilience and prosperity.

Antariksh Singh

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