IMF pegs India's growth to rise to 7% in 2020; still world's fastest

Amid the global slowdown in economy, International Monetary Fund (IMF) released its World Economic Outlook (WEO) report on Tuesday, projecting the growth rate of India and China to be at 7 percent and 5.1 percent respectively in 2020. The report stated that India and China are expected to remain the fastest-growing major economies in the world with a projected growth of 6.1 percent in 2019.

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"In India, growth softened in 2019 as corporate and environmental regulatory uncertainty, together with concerns about the health of the nonbank financial sector, weighed on-demand," the report said. In July this year, the IMF had put India's growth rate at 7 percent for the current fiscal owing to "weaker-than-expected outlook" of domestic demand. In April, it had said that India will grow at 7.3 percent in 2019.

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In contrast, Pakistan is expected to grow at a rate of 3.3 percent in the year 2019 and 2.4 in the year 2020. The IMF also projected the global economy to grow only at 3 percent this year and 3.4 percent next year. "The global economy is in a synchronized slow down and we are, once again, downgrading growth for 2019 to 3 percent, its slowest pace since the global financial crisis. Growth continues to be weakened by rising trade barriers and increasing geopolitical tensions," the IMF said.

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Amid trade tension between US and China, the monetary body also estimated that it will cumulatively reduce the level of global GDP by 0.8 percent by 2020. "If all 2018 and 2019 tariffs between US and China were lifted, global GDP would be boosted by 0.8 percent," IMF chief economist Gita Gopinath said addressing a press conference in Washington DC said.

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