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Indian Economy: The Chief of the International Monetary Fund has said that despite the pace of world growth remaining almost stable in 2025, India’s growth will remain slightly weak. He said that the phase of currency reduction will continue. IMF Managing Director Kristalina Georgieva was talking to journalists on Friday. His statement has come at a time when the World Economic Outlook is to be released by the IMF on January 17. A day after that, US President Donald Trump is going to take office.
Kristalina Georgieva said that the US economy is doing better than expected. Despite this, there remains a lot of uncertainty regarding President Donald Trump’s trade policy. Due to this, the challenges arising due to very high long term interest rates have increased even more. Inflation is almost near the target of the US Federal Reserve. The labor market is also stable.
Interest rates will remain almost stable
The IMF Chief said that the US Federal Reserve will have to wait for some more data to cut interest rates further. Overall, interest rates will remain almost stable despite being higher for some time. In a way, this statement is an indication of the IMF’s future projections regarding global development. But he refused to give details about it. In October 2024, the IMF had increased the growth estimates of the US, Brazil and Britain. At the same time, the estimates of growth rates of China, Japan and Euro zone were cut. The reasons for this were given as the risks arising due to wars between many countries, tight monetary policy and new trade wars.
Global growth forecast in July was 3.2 percent
The global growth forecast for 2025 released by the IMF in July 2024 was kept at less than 3.2 percent. Whereas for 2024 only 3.2 percent was kept. However, IMF had also warned that mid-term global growth will be around 3.1 percent in five years. Which is even lower than the pre-Corona trend.
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