IMF reaffirms that India to be fastest-growing major economy in 2018

In its latest report “Asia and Pacific Regional Economic Outlook”, the International Monetary Fund (IMF) has reaffirmed that India will be the fastest-growing major economy in 2018, with a growth rate of 7.4% that rises to 7.8% in 2019 with medium-term prospects remaining positive. As per report, India was recovering from the effects of demonetisation and the introduction of the Goods and Services Tax (GST), and the recovery is expected to be underpinned by a rebound from transitory shocks as well as robust private consumption. The report said, Medium-term consumer price index inflation is forecast to remain within but closer to the upper bound of the Reserve Bank of India (RBI)’s inflation-targeting band of 4% with a plus or minus 2% change. It said, the consumer price increase in 2017 was 3.6% and projected it to be 5% in 2018 and 2019. Overall, the report stated that Asia continues to be both the fastest-growing region in the world and the main engine of the world’s economy.