IMF's latest World Economic Outlook- Warns Future Threat to Global Growth

BANGALORE: The International Monetary Fund's annually forecasts growth rate through its World Economic Outlook update for countries around the world with an objective to measure the global output. The latest report which was released for the current year is citing a threat to the economies. The overview of the growth as against the preceding years is diminishing. Here are the updates for India and other nations.

Lately, Prime Minister Narendra Modi has been seeking to slash red tapism in his endeavor to establish a ‘Make in India’ campaign. His aspirations are aimed at attracting global firms and encouraging the manufacturing sector, which has been long eclipsed by the neighboring China. The government likewise has relaxed some foreign investment entry rules on these lines.

After Modi’s landslide election win in May, a new report released by World Economic Outlook (WEO), an update of International Monetary Fund (IMF) on India’s economic growth rate gave a boosting welcome. As per the report, IMF hiked the 2014-15 growth forecast to 5.6 percent for India, citing better exports and investment prospects under the new government.

According to this Washington based IMF, India now being Asia’s third largest economy is to expand up to 6.4 percent the following year. The hopes are that the Prime Minister is ushering with reforms to revive the economy as he promised in his campaign. Analysts say that Gross Domestic Product has risen sharply to 5.7 percent in the first quarter this year following the slumping rate in preceding two years.

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