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India to beat China again as fastest-growing in 2016: IMF

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  • Recent report of IMF (International Monetary Fund) says India will be the fastest growing economy for the second consecutive year in 2016 at 7.5percent.
  • According to IMF, it forecast a growth projection of 5 percent for India in 2016 ,and for china 6.3 percent in its World Economic Outlook Update release.
  • Though India has lowered its current year global economy growth forecast to 3.3 per cent.
  • But the estimates of Indian Finance Ministry (IFM) and the Reserve Bank of India (RBI) has higher than IMF’s growth projection rate.
  • IFM expects GDP growth to be 8-8.5 per cent in 2015-16.
  • RBI expects it to be 7.6 percent.
  • IMF has retained its previous year estimate for India as well as china.
  • But report reveals that the global economy growth has reduced to 3.3percent from 3.5percent for India according to IMF early prediction in 2014.
  • But global economy growth has been retained 3.8 percent in 2016.
  • Slowdown of economic growths effects several factors in market such as lower commodity prices and tighter external financial conditions, structural bottlenecks, rebalancing in China, and economic distress related to geopolitical factors.
  • An increase in growth factor is expected in 2016.
  • Growth in developing economies has been estimated at 4.2 per cent in 2015, down 0.1 per cent from the projection made in April.
  • IMF releases its data following March as its financial ending year.

Abbreviation 

  • IMF- International Monetary Fund
  • IFM- Indian Finance Ministry
  • RBI-Reserve Bank of India