The International Monetary Fund (IMF) on Tuesday revised upward its projections for India and said the country is now expected to grow by 7% in 2024-25, compared to 6.8% projected in April. The forecast for growth in India has been revised upward, to 7 per cent, this year, with the change reflecting carryover from upward revisions to growth in 2023 and improved prospects for private consumption, particularly in rural areas, the International Monetary Fund said in its latest edition of the world economic outlook update. The fund however said that global economy is in a sticky spot and global growth is projected to be in line with the April 2024 World Economic Outlook (WEO) forecast, at 3.2 percent in 2024 and 3.3 percent in 2025. Services inflation is holding up progress on disinflation, which is complicating monetary policy normalization. Upside risks to inflation have thus increased, raising the prospect of higher for even longer interest rates, in the context of escalating trade tensions and increased policy uncertainty. The policy mix should thus be sequenced carefully to achieve price stability and replenish diminished buffers, IMF stated.
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