India, China to contribute half of world growth in 2024: July WEO update
India, which had a growth of 8.2 per cent in 2023, is projected to have a growth of 7 per cent this year and 6.5 per cent in 2025
The International Monetary Fund’s (IMF) World Economic Outlook Update for July 2024 predicts that almost half of global growth this year will be contributed by India and China.
Global growth is projected to be at 3.2 per cent in 2024 and 3.3 per cent in 2025. While advanced economies show a more flattish trend, with growth projected to be around 1.7 per cent, emerging markets and developing economies will account for 4.3 per cent.
Growth in Euro areas is projected to pick up as the US shows signs of cooling by next year.
India, which had a growth of 8.2 per cent in 2023, is projected to have a growth of 7 per cent this year and 6.5 per cent in 2025.
China, too, is projected to slow down, after a 5.2 per cent growth last year to a projected figure of 5 per cent this year and 4.5 per cent next year.
Middle East and Central Asia is projected to have stronger growth next year, while the projections look flat or downward for most countries/regions.
According to the IMF website, “Services inflation is holding up progress on disinflation, which is complicating monetary policy normalization.”