NEW DELHI: Kristalina Georgieva, International Monetary Fund (IMF) managing director, on Friday stated India’s economy was expected to be a “little weaker” in 2025 as she presumed a number of uncertainty in the world this yr primarily across the US commerce insurance policies.
“The US is doing quite a bit better than we expected before, the EU is somewhat stalling, (and) India a little weaker,” Georgieva stated with out substantiating any additional.
In her annual media roundtable with a gaggle of reporters on Friday, she stated international development is expected to be regular in 2025, however with regional divergence.
She additionally stated China was witnessing deflationary strain and ongoing challenges with home demand.
“Low-income countries, despite all the efforts they are making, are in a position when any new shock can affect them quite negatively,” Georgieva was quoted as saying by information company PTI.
“What we expect in 2025 is to have quite a lot of uncertainty, especially in terms of economic policies. Not surprisingly, given the size and role of the US economy, there is keen interest globally in the policy directions of the incoming administration, in particular on tariffs, taxes, deregulation and government efficiency,” she additional stated.
“This uncertainty is particularly high around the path for trade policy going forward, adding to the headwinds facing the global economy, especially for countries and regions that are more integrated in global supply chains, medium-sized economies, (and) Asia as a region,” the IMF managing director stated.
India’s economy is estimated to sluggish to a four-year low in 2024-25 due to moderation in manufacturing and sluggish funding, whereas sturdy development in the farm sector is expected to present some help and assist increase rural consumption.
The first advance estimates for the present monetary yr, launched by the National Statistics Office (NSO) on Tuesday, confirmed gross home product (GDP) is estimated to develop by 6.4%, sharply decrease than the 8.2% recorded in 2023-24.
A current finance ministry report had stated {that a} mixture of financial coverage stance and macroprudential measures by the central financial institution, and structural elements, may have led to the slowdown and all eyes are actually on the February 1 Budget for measures to revive demand and push development towards the backdrop of worldwide uncertainty and geopolitical tensions.
