The International Monetary Fund (IMF) has shocked the world’s second-largest economic superpower, China, and reduced its GDP growth estimate. The IMF has cut China’s GDP growth forecast by 20 basis points to 5 per cent for 2023 and by 30 basis points to 4.2 per cent for 2024, citing the decline in the real estate sector. IMF says that after the Covid period, the Chinese economy had picked up the pace of growth but has now slowed down.
According to the report, China’s property market is facing a crisis. Unemployment and inflation are at their peak there. That’s why people are reluctant to spend money.
On the other hand, the International Monetary Fund has given good news for India. IMF has increased India’s GDP growth estimate. India’s GDP growth rate was estimated to be 6.1, but now it has risen to 6.3. According to the IMF, India’s GDP growth estimate in 2024 may also be 6.3.
The International Monetary Fund says that during the April to June quarter, there has been strong consumption in the Indian market. Keeping this in view, the agency has decided to increase India’s GDP growth estimate to 6.3 per cent. However, according to RBI estimates, India’s growth rate may be around 6.5% in FY 2024.
The International Monetary Fund has released the World Economic Outlook Report. In this, apart from China, the growth estimates of the Eurozone have also been reduced, emphasizing the uneven and sluggish nature of their growth. The IMF cut its global real GDP growth forecast for 2024 by 0.1 percentage points from its July estimate to 2.9 per cent while maintaining its 2023 growth forecast at 3.0 per cent. Recognizing America’s “remarkable strength”, the IMF has maintained its GDP growth forecast at 2.1 per cent in 2023 while predicting a growth rate of 1.5 per cent in 2024.
