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India to grow 7.5 percent in 2016-17: IMF
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SME Times News Bureau | 04 May, 2016
India remains the fastest-growing large economy in the world, with GDP
expected to increase by 7.5 percent in 2016 and 2017, the International
Monetary Fund (IMF) said on Monday.
"India has benefited from
lower oil prices and remains the fastest-growing large economy in the
world, with GDP expected to increase by 7.5 percent this year and next,"
said an IMF survey.
Noting that growth in Asia and Pacific was
expected to be strong at 5.3 percent this year and next, accounting for
two-thirds of global growth, the report on the 'Regional Economic
Outlook for Asia and the Pacific' said despite a slight moderation, Asia
would remain the engine of global growth.
"While external demand
remains sluggish, domestic demand continues to show resilience across
most of the region, driven by low unemployment, growth in disposable
income, lower commodities prices and macroeconomic stimulus."
Projecting
a mixed outlook for the region, the report said despite being Asia's
largest economies, China and Japan would continue to face challenges.
"China's
growth is forecast to moderate from 6.9 percent in 2015 to 6.5 percent
this year and 6.2 percent in 2017, as its economy continues rebalancing
of shifting away from manufacturing and investment to services and
consumption."
Admitting that Asia was impacted by a weak global
recovery, IMF regional director Changyong Rhee said domestic demand,
however, remained resilient across the region, thanks to rising incomes
and macro-economic policies in many countries.
"While transition
to slower but sustainable growth is desirable for both China and the
global economy, it is causing changes in the manufacturing sector over
the medium term, as heavy industries, such as steel and shipbuilding,
face consolidation to reduce excess capacity," he said.
Japan's
growth would be at 0.5 percent in 2016, before dropping to 0.1 percent
in 2017, as the effect of the anticipated consumption tax increase takes
hold, said the survey, adding that "an aging population and high public
debt remain major drags" on its long-term growth.
Observing that
the region faced a number of external challenges, including slow growth
in advanced economies and emerging markets, weak global trade, low
commodity prices and volatile global financial markets, the report said
the risks compound domestic vulnerabilities such as high debt incurred
in recent years.
"In the short term, China's transition to a new
growth model will disrupt its regional partners, especially those
exposed to the region's biggest economy."
Geopolitical tensions and domestic policy uncertainty add risks of potential trade disruptions or lower domestic demand.
Natural
disasters can also reverse economic gains, particularly in lower-income
countries and small states face the challenge of reduced financial
services by global banks, which could hold back financial inclusion and
growth.
"Low commodity prices could be a bigger boost to the
region's economies than expected; and regional and multilateral trade
agreements, such as the Trans-Pacific Partnership, could benefit
Asia-Pacific even before they are ratified," the report added.
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Customs Exchange Rates |
Currency |
Import |
Export |
US Dollar
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66.20
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64.50 |
UK Pound
|
87.50
|
84.65 |
Euro
|
78.25
|
75.65 |
Japanese
Yen |
58.85 |
56.85 |
As on 13 Aug, 2022 |
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