IMF Cuts India’s growth forecast to 6.6% from 7.6%

The International Monetary Fund (IMF) cuts GDP  growth estimate for 2016-17 to 6.6% from its estimate of 7.6% due to demonetisation of high value currency notes. And the China's GDP growth estimate was raised for 2016-17 to 6.7% from its estimate of 6.5%. If the estimates are perceive then India risks losing the 'fastest growing major economy' tag. IMF estimates the economy to recover and grow by 7.2% in 2017-18, inert slower than the earlier forecast of 7.6%. In 2018-19, it’s estimates the Indian economy to grow by 7.7%.

Earlier in this month, the World Bank cuts the country's economic growth projection to 7% for 2016-17 from its previous estimate of 7.6%. Reserve Bank of India (RBI) has also lowered its GDP growth estimate for the current fiscal year to 7.1% from 7.6%. The Central Statistics Office estimates the economy to growth by 7.1% in 2016-17, lower than the previous estimate of 7.6%, this estimate does not consider the impact of demonetisation. Global growth for 2016 is now projected at 3.1%, in line with October 2016 estimate. Advanced economies are now projected to grow by 1.9% in 2017 and 2% in 2018, 0.1 and 0.2% points more respectively compared to the October estimate.