In News :

Context :

  • The International Monetary Fund (IMF) has said India’s economy is poised to pick up this year.

Key Facts :

  • IMF’s World Economic Outlook Update, released yesterday by its chief economist Gita Gopinath in Davos, projected that India will grow at 7.5 per cent this year and 7.7 per cent in 2020, an impressive over one percentage point ahead of China’s estimated growth of 6.2 per cent in these two years.
  • The IMF attributed the pick up to lower oil prices and a slower pace of monetary tightening.
  • IMF said India would remain one of the fastest growing major economies of the world.
  • Despite fiscal stimulus that offsets some of the impacts of higher US tariffs, China’s economy will slow down due to the combined influence of needed financial regulatory tightening and trade tensions with the US.
  • China which grew at 6.9 per cent in 2017, as compared to 6.7 per cent by India, had a growth rate of 6.6 per cent in 2018.
  • The IMF said while, the Chinese growth rate has been on a downward slope India has experienced an upward trajectory in these years.
  • The IMF report comes days after the Price waterhouse Cooper’s Global Economy Watch said that India is likely to surpass the United Kingdom in the world’s largest economy rankings this year.

International Monetary Fund :

  • International Monetary Fund (IMF) was established with stated objectives to promote international economic cooperation, international trade, employment, and exchange rate stability, including by making resources available to member countries to meet balance of payments needs. Its headquarters are in Washington, D.C.
  • It was conceived on July 22, 1944 in the Brettonwoods Conference, New Hampshire, United States, originally with 45 members and came into existence on December 27, 1945 when 29 countries signed the agreement, with a goal to stabilize exchange rates and assist the reconstruction of the world’s international payment system.
  • Countries contributed to a pool which could be borrowed from, on a temporary basis, by countries with payment imbalances. The IMF works to improve the economies of its member countries.
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