SME Times is powered by   
Search News
Just in:   • Sensex, Nifty end in green  • Parched lips in Nepal as toll rises to 4,347  • MAT row: Lack of policy clarity proves fatal  • Ocean Recovery Alliance Facilitates Hong Kong's Go Green Bottle  • United India Insurance fined Rs.60 lakh 
Last updated: 27 Sep, 2014  

IMF.Thmb.jpg IMF pegs India's 2014 growth at 6.4 percent

india-industry
   Top Stories
» India, US negotiating high-quality bilateral investment treaty
» Discussion over new MSME policy underway: MoS MSME
» FDI limit in pension sector hiked to 49 pc
» Use technology to increase share of service exports: FM
» 26th ASEAN Summit ends, adopts three declarations
Arun Kumar | 24 Jan, 2013
Picking up from the current downslide, India's growth is projected to rise from 4.5 percent in 2012 to 5.9 percent in 2013 and reach 6.4 percent in 2014, according to the International Monetary Fund (IMF).

Even as it lowered India's growth rate by a minuscule 0.1 percentage point for 2013 from its October projection, IMF in an update to its World Economic Outlook (WEO) released Wednesday left the 2014 figure unchanged.

As the constraints on economic activity start to ease this year, global growth will strengthen gradually to 3.5 percent this year, from 3.2 percent in 2012 - a downward revision of just 0.1 percentage point compared with the October 2012 WEO.

But the recovery is slow, and the report stressed that policies must address downside risks to bolster growth.

Growth in emerging market and developing economies is on track to build to 5.5 percent in 2013, it said. Nevertheless, growth is not projected to rebound to the high rates recorded in 2010-11.

Supportive policies have underpinned much of the recent acceleration in activity in many economies, the IMF said.

But weakness in advanced economies will weigh on external demand, as well as on the terms of trade of commodity exporters, given the assumption of lower commodity prices in 2013 in the January Update, it said.

Moreover, "the space for further policy easing has diminished, while supply bottlenecks and policy uncertainty have hampered growth in some economies", it said citing the example of Brazil and India.

The report observed that economic conditions improved slightly in the third quarter of 2012, driven by performance in emerging market economies and the US.

The IMF forecast a growth of 2 percent in the US this year, broadly unchanged from the October 2012 WEO.

A supportive financial market environment and the turnaround in the housing market will support consumption growth, it said.

For the US, the IMF stressed that "the priority is to avoid excessive fiscal consolidation in the short term, promptly raise the debt ceiling, and agree on a credible medium-term fiscal consolidation plan, focused on entitlement and tax reform".

For emerging market and developing economies, the report underscored the need to rebuild policy room for manoeuvre.

It noted that "the appropriate pace of rebuilding must balance external downside risks against risks of rising domestic imbalances".
 
Print the Page Add to Favorite
 
Share this on :
 

Please comment on this story:
 
Subject :
Message:
(Maximum 1500 characters)  Characters left 1500
Your name:
 

 
  Customs Exchange Rates
Currency Import Export
US Dollar
63.00
62.00
UK Pound
94.20
92.10
Euro
68.20
66.50
Japanese Yen 52.55 51.35
As on 28 Apr, 2015
  Daily Poll
Do you agree that Jaitley's Union Budget 2015-16 has neglected the SME sector?
 Yes
 No
 Partially Agreed
  Commented Stories
» Starting an import export business: Basic guide for beginners(11)
» Govt. approves subsidy for 2,221 cold storages(6)
» Exports must for economic growth(4)
» MUDRA Bank: 5.77 cr SMEs to be provided easy finance(3)
» Growing export opportunities in Malaysia(1)
 
 
About Us  |   Advertise with Us  
  Useful Links  |   Terms and Conditions  |   Disclaimer  |   Contact Us  
Follow Us : Facebook Twitter