World Economic Outlook

Context: The International Monetary Fund (IMF) has released its World Economic Outlook (WEO) at the Annual Meetings in Washington, projecting growth rates and economic trends globally.

Data from World Economic Outlook:

• India’s growth:

• Projected growth for FY 2024-25: 7% Projected growth for FY 2025-26: 6.5% Decline from 8.2% in 2023 attributed to the normalization of demand after the pandemic.

• Projected growth for FY 2024-25: 7%

• Projected growth for FY 2025-26: 6.5%

• Decline from 8.2% in 2023 attributed to the normalization of demand after the pandemic.

• Global growth: Expected global output growth: 3.2% for 2024 and 2025.

• Expected global output growth: 3.2% for 2024 and 2025.

• Inflation: Global inflation: From 9.4% in Q3 2022 to an expected 3.5% by end of 2025.

• Global inflation: From 9.4% in Q3 2022 to an expected 3.5% by end of 2025.

• Risks identified: Geopolitical tensions, particularly the Russia-Ukraine war and conflict in West Asia. Growing protectionism and tight monetary policies. Sovereign debt issues and weak economic activity in China.

• Geopolitical tensions, particularly the Russia-Ukraine war and conflict in West Asia.

• Growing protectionism and tight monetary policies.

• Sovereign debt issues and weak economic activity in China.

• IMF recommendations: Triple policy pivot: Monetary policy neutrality: Gradually shift to neutral stances in monetary policies. Build fiscal buffers: Reinforce fiscal policies after years of expansive measures. Structural reforms: Focus on productivity growth, coping with demographic changes, climate transition, and increasing resilience.

• Triple policy pivot: Monetary policy neutrality: Gradually shift to neutral stances in monetary policies. Build fiscal buffers: Reinforce fiscal policies after years of expansive measures. Structural reforms: Focus on productivity growth, coping with demographic changes, climate transition, and increasing resilience.

• Monetary policy neutrality: Gradually shift to neutral stances in monetary policies.

• Build fiscal buffers: Reinforce fiscal policies after years of expansive measures.

• Structural reforms: Focus on productivity growth, coping with demographic changes, climate transition, and increasing resilience.