The International Monetary Fund (IMF) on Tuesday lowered down India’s GDP growth forecast for 2019 to 6.1 percent, which is 1.2 percent lower than it’s calculation.
IMF had estimated in the month of April that India’s economic growth will grow at a rate of 7.3 percent in 2019. After three months, the IMF projected slower growth with a decline of 0.3 percent.
Unlike India’s actual growth rate of 6.8 percent in 2018, the IMF in its latest World Economic Outlook projected India’s growth rate to be 6.1% in 2019. Also, the Indian economy is expected to reach 7.0 percent by 2020. In its recent edition of the South Asia Economic Focus, the World Bank on Sunday said that India’s growth rate in 2019 is expected to fall to 6% from 6.9 percent in 2018.
The IMF has also did forecast China’s economic growth at 6.1 percent in the current year and 5.8% in 2020. Whereas in 2018 the economic growth rate of the neighboring country was 6.6%. In the context of the global economic growth rate, the IMF warned that it is reducing the growth rate estimate for 2019 to three percent.
This down fall of economic growth rate is mainly due to increasing trade restrictions and geopolitical tensions.