The International Monetary Fund (IMF) kept its outlook for India GDP growth rate unchanged at 7.2% in 2017-18 and 7.7% in 2018-19, according to the latest update of the fund’s World Economic Outlook. The IMF also kept its outlook for World GDP growth unchanged at 3.5% in 2017 and 3.6% in 2018. The global economy grew at 3.2% in 2016. The Indian economy expanded by 7.1% in 2016-17. The fund revised upwards its growth forecast for China and Japan, although India remains the fastest growing major economy in the region and the world. The report seems to suggest good times ahead for the global economy, with risks to growth in the medium term remaining low. IMF pointed out some of the trends that economies need to keep an eye on—monetary policy normalization in some advanced economies, notably the US being one of them. It could trigger a faster-than-anticipated tightening in global financial conditions. A turn toward inward-looking policies and geopolitical risks remain salient, IMF said, while particularly cautioning against protectionist tendencies. The agency urged the international community to adopt the multilateral system to the changing global economy.

(Live Mint)