'India's Economic Slowdown Temporary, Expect Momentum In Future': International Monetary Fund Chief
The International Monetary Fund chief, Kristalina Georgieva on January 24 said that growth slowdown in the country appears to be temporary and she expects the condition to improve in future.
"We had a downgrade in one large market India but we believe that's temporary. We expect the momentum to improve further going ahead," the managing director of IMF noted.
The comment came days after IMF in its recent assessment said that the Indian economy was estimated to grow 4.8 per cent in 2019-'20, with an improvement to 5.8 per cent in 2020-'21 and 6.5 per cent in 2021-'22.
Georgieva who was at the 2020 World Economic Forum annual meet in Davos, Switzerland said that world appears to be at a better place in January 2020, in comparison to what it was when the IMF announced its World Economic Outlook in October 2019, reported NDTV.
Explaining further, she said that the receding trade tension between two super economic giant - China and the US and synchronised tax cuts were among the reasons behind the positive momentum.
However, she pointed out that a growth rate of 3.3 per cent is not good for the world economy. "It is still sluggish growth. We want fiscal policies to be more aggressive and we want structural reforms and more dynamism," she said.
Talking on the emerging market she said that they are moving forward. Apart from commenting on India's condition, she said that countries like Vietnam and Indonesia are doing well.
She mentioned, few of the African countries excelling, but countries like Mexico is not. She mentioned factors like weakness in long term productivity growth and low inflation as a risk ahead for the global economy.