The International Monetary Fund (IMF), on Tuesday (January 30) improved its forecast of growth of global economy citing "resilience" from major economies including India. The updated global growth figure is 0.2 percentage points higher than its previous forecast in October. The IMF said that Indian economy may grow by 6.5&nbsp;per cent, up by 0.2 per cent.

"We had simultaneously less inflation and more growth," IMF chief economist Pierre-Olivier Gourinchas told reporters ahead of the report's publication as quoted by AFP.

"It's not just a US story. There was a lot of resilience in many, many parts of the world in the last year and going into 2024," he said, highlighting countries including China, Russia, Brazil and India.

Also Read | <a href="https://www.wionews.com/business-economy/indias-to-be-a-7-trillion-economy-by-2030-heres-what-the-finance-ministry-report-says-685122">India's to be a $7 trillion economy by 2030? Here's what the Finance Ministry report says&nbsp;</a>

Despite the fresh revision indicating hope for the global economy, the IMF has said that the global growth is likely to remain below 3.8 per cent, the recent historical average. The factors it cited were elevated interest rates, waning government support in the wake of withdrawal of the Covid pandemic and low productivity.

The world body has kept overall inflation outlook unchanged at 5.8 per cent. In advanced economies, the inflation is predicted to be 2.6 per cent this year. There is a decrease of 0.4 per cent from the forecast in October.

In case of developing economies, the average annual inflation is predicted to be 8.1 per cent. This is 0.3 percentage points up from the previous prediction.

<h2>US, China behind the boost</h2>

The IMF has said that performance by the United States and China has been behind the increased outlook. Both countries' growth prospects in 2024 saw a significant boost. This means that US and China will experience less substantial slowdown than previously predicted.

The IMF has predicted that the US economy will grow by 2.1 per cent this year.

Also Read | <a href="https://www.wionews.com/business-economy/imf-grants-argentina-extension-on-44-bn-loan-review-allowing-for-further-reforms-685069">IMF grants Argentina extension on $44 bn loan review, allowing for further reforms</a>

In absolute terms, the percentage figure is less than 2.5 per cent predicted in 2023 but IMF has attributed this to "statistical carryover effects from the stronger-than-expected growth outcome for 2023."

In case of China, its economy is expected to hit a growth of 4.6 per cent. This is down from 5.2 per cent last year but the latest figure is better than what was previously anticipated.

<h2>Gloom in Europe</h2>

Things might look brighter in the US, China and other Asian countries, the picture in Europe doesn't look very encouraging.

The IMF has highlighted "notably subdued growth in the euro area."

Among the G7 nations, Germany is on path to become the slowest-growing economy with growth of just 0.5 per cent this year. This will follow a 0.3 per cent contraction in 2023.

Watch | Why is Germany planning to try a four-day work week from February 1?

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The UK, Italy and France will see 1 per cent or less growth this year, says IMF. Spain is slightly ahead with growth forecast of 1.5 per cent.

(With inputs from agencies)

The International Monetary Fund (IMF), on Tuesday (January 30) improved its forecast of growth of global economy citing "resilience" from major economies including India.

The International Monetary Fund (IMF), on Tuesday (January 30) improved its forecast of growth of global economy citing "resilience" from major economies including India. The updated global growth figure is 0.2 percentage points higher than its previous forecast in October. The IMF said that Indian economy may grow by 6.5 per cent, up by 0.2 per cent. "We had simultaneously less inflation and more growth," IMF chief economist Pierre-Olivier Gourinchas told reporters ahead of the report's publication as quoted by AFP. "It's not just a US story. There was a lot of resilience in many, many parts of the world in the last year and going into 2024," he said, highlighting countries including China, Russia, Brazil and India. Also Read | India's to be a $7 trillion economy by 2030? Here's what the Finance Ministry report says Despite the fresh revision indicating hope for the global economy, the IMF has said that the global growth is likely to remain below 3.8 per cent, the recent historical average. The factors it cited were elevated interest rates, waning government support in the wake of withdrawal of the Covid pandemic and low productivity. The world body has kept overall inflation outlook unchanged at 5.8 per cent. In advanced economies, the inflation is predicted to be 2.6 per cent this year. There is a decrease of 0.4 per cent from the forecast in October. In case of developing economies, the average annual inflation is predicted to be 8.1 per cent. This is 0.3 percentage points up from the previous prediction. US, China behind the boost The IMF has said that performance by the United States and China has been behind the increased outlook. Both countries' growth prospects in 2024 saw a significant boost. This means that US and China will experience less substantial slowdown than previously predicted. The IMF has predicted that the US economy will grow by 2.1 per cent this year. Also Read | IMF grants Argentina extension on $44 bn loan review, allowing for further reforms In absolute terms, the percentage figure is less than 2.5 per cent predicted in 2023 but IMF has attributed this to "statistical carryover effects from the stronger-than-expected growth outcome for 2023." In case of China, its economy is expected to hit a growth of 4.6 per cent. This is down from 5.2 per cent last year but the latest figure is better than what was previously anticipated. Gloom in Europe Things might look brighter in the US, China and other Asian countries, the picture in Europe doesn't look very encouraging. The IMF has highlighted "notably subdued growth in the euro area." Among the G7 nations, Germany is on path to become the slowest-growing economy with growth of just 0.5 per cent this year. This will follow a 0.3 per cent contraction in 2023. Watch | Why is Germany planning to try a four-day work week from February 1? × The UK, Italy and France will see 1 per cent or less growth this year, says IMF. Spain is slightly ahead with growth forecast of 1.5 per cent. (With inputs from agencies)

IMF raises world economy growth forecast, pegs India’s growth at 6.5 per cent

The International Monetary Fund(IMF)&nbsp;warned on Wednesday that Asia would witness sharper-than-expected contraction in economic activity amid the coronavirus <a href="https://www.wionews.com/world/pandemic-downturn-offers-path-to-address-climate-change-imf-333245">pandemic</a>.

<a href="https://www.wionews.com/business-economy/imfs-debt-restructuring-should-help-countries-overcome-fiscal-stress-nirmala-sitharaman-335437">Also Read:&nbsp;IMF's debt restructuring should help countries overcome fiscal stress, says&nbsp;Nirmala Sitharaman</a>

"Fear of infection and social distancing measures are dimming consumer confidence and will keep economic activity below capacity until a vaccine is developed," an <a href="https://www.wionews.com/india-news/gdp-in-most-countries-to-recover-to-pre-pandemic-levels-by-2022-imf-335038">IMF</a> report said.

IMF said next year's growth will be below par in Asia especially in those countries which are dependent on tourism.

The international body said Asia's economy may contract 2.2 per cent this year due to a slump in economic activity in Malaysia, Philippines and <a href="https://www.wionews.com/india-news/modis-aatmanirbhar-bharat-important-initiative-imf-330233">India</a>.&nbsp;

The IMF warned that India's economy is likely to shrink 10.3 per cent this year even as forecast China's economy to expand 1.9 per cent even as it said Asia's economy is likely to grow 6.9 per cent next year.

"With the pandemic seemingly far from over, policy support should be sustained and, in some cases, increased," the <a href="https://www.wionews.com/india-news/further-fiscal-stimulus-warranted-in-india-says-imf-326694">IMF</a> said, adding,"full arsenal of policy support is needed that includes steps to help households and businesses cope with structural changes caused by COVID-19 such as permanent job losses in industries like tourism."

The IMF had earlier urged the Middle East and North African countries to accelerate reforms and diversify their economies amid the coronavirus pandemic as it projected the economies of the MENA region to shrink by five per cent this year.

The region which is rich in oil may continue to experience downturn in oil prices with the average price of oil expected to be $41.69 a barrel this year and $46.70 a barrel in 2021, down from $57-$64 average in 2019, the IMF forecast highlighted.

The International Monetary Fund(IMF) warned on Wednesday that Asia would witness sharper-than-expected contraction in economic activity amid the coronavirus pandemic.

The International Monetary Fund(IMF) warned on Wednesday that Asia would witness sharper-than-expected contraction in economic activity amid the coronavirus pandemic. Also Read: IMF's debt restructuring should help countries overcome fiscal stress, says Nirmala Sitharaman "Fear of infection and social distancing measures are dimming consumer confidence and will keep economic activity below capacity until a vaccine is developed," an IMF report said. IMF said next year's growth will be below par in Asia especially in those countries which are dependent on tourism. The international body said Asia's economy may contract 2.2 per cent this year due to a slump in economic activity in Malaysia, Philippines and India. The IMF warned that India's economy is likely to shrink 10.3 per cent this year even as forecast China's economy to expand 1.9 per cent even as it said Asia's economy is likely to grow 6.9 per cent next year. "With the pandemic seemingly far from over, policy support should be sustained and, in some cases, increased," the IMF said, adding,"full arsenal of policy support is needed that includes steps to help households and businesses cope with structural changes caused by COVID-19 such as permanent job losses in industries like tourism." The IMF had earlier urged the Middle East and North African countries to accelerate reforms and diversify their economies amid the coronavirus pandemic as it projected the economies of the MENA region to shrink by five per cent this year. The region which is rich in oil may continue to experience downturn in oil prices with the average price of oil expected to be $41.69 a barrel this year and $46.70 a barrel in 2021, down from $57-$64 average in 2019, the IMF forecast highlighted.

India's economy to shrink 10.3%, China to expand 1.9% this year: IMF

The International Monetary Fund (IMF) on Monday lowered growth estimate for India to 4.8% for FY20, citing stress in the non-bank financial sector and weak rural income growth as the major factors for the downward revision.

IMF lowers India growth estimate to 4.8% for FY20

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IMF raises world economy growth forecast, pegs India’s growth at 6.5 per cent

India's economy to shrink 10.3%, China to expand 1.9% this year: IMF

IMF lowers India growth estimate to 4.8% for FY20