WEF 2020: Growth slowdown in India temporary, expect momentum to improve going ahead, says IMF chief Kristalina Georgieva

IMF chief Kristalina Georgieva on Friday said growth slowdown in India appears to be temporary and she expects the momentum to improve going ahead

Press Trust of India January 24, 2020 17:16:10 IST
WEF 2020: Growth slowdown in India temporary, expect momentum to improve going ahead, says IMF chief Kristalina Georgieva
  • Speaking at the WEF 2020, IMF chief Kristalina Georgieva said the world appears a better place in January 2020 compared to what it was when IMF announced its World Economic Outlook in October 2019

  • She said the factors driving this positive momentum include receding trade tension after the US-China first phase trade deal and synchronised tax cuts, among others

  • She, however, said a growth rate of 3.3 percent is not fantastic for the world economy

Davos: IMF chief Kristalina Georgieva on Friday said growth slowdown in India appears to be temporary and she expects the momentum to improve going ahead.

Speaking here at the WEF 2020, she also said the world appears a better place in January 2020 compared to what it was when IMF announced its World Economic Outlook in October 2019.

She said the factors driving this positive momentum include receding trade tension after the US-China first phase trade deal and synchronised tax cuts, among others.

She, however, said a growth rate of 3.3 percent is not fantastic for the world economy.

WEF 2020 Growth slowdown in India temporary expect momentum to improve going ahead says IMF chief Kristalina Georgieva

File image of IMF chief Kristalina Georgieva, Reuters.

"It is still sluggish growth. We want fiscal policies to be more aggressive and we want structural reforms and more dynamism," the managing director of the International Monetary Fund (IMF) said.

On emerging markets, she said they are also moving forward.

"We had a downgrade in one large market India but we believe that's temporary. We expect the momentum to improve further going ahead. There are also some bright spots like Indonesia and Vietnam," she noted.

She further said a number of African countries are doing very well, but some other nations like Mexico are not.

On risks ahead for the global economy, the IMF chief listed factors like weakness in long-term productivity growth and low inflation.

"We are living in a more risk-prone world. It is only January and there have been events that are sparking risks for the global economy," she added.

Updated Date:

also read

World Bank rules out bridge financing or new loan commitments to crisis-hit Sri Lanka
World

World Bank rules out bridge financing or new loan commitments to crisis-hit Sri Lanka

The World Bank said that they are reshuffling the already allocated resources to provide essential medicines and other cash assistance to the vulnerable

Interest rates need to move up much more to bring down inflation durably, says Gita Gopinath
Business

Interest rates need to move up much more to bring down inflation durably, says Gita Gopinath

The first deputy managing director at IMF, however, said emerging markets had seen a reversal of portfolio flows, but India is better placed than most other countries to handle the volatility

Pakistani rupee plunges to all-time low against US dollar
World

Pakistani rupee plunges to all-time low against US dollar

The Pakistani rupee on Thursday continued its downward slide against the US dollar as it dropped to an all-time low, surpassing 191 in the interbank market