Growth still resilient in India: World Economic Outlook
Q. The International Monetary Fund on 4th Oct released the World Economic Outlook. According to this, which is the second largest economy in the world?- Published on 10 Oct 16a. India
b. China
c. United States
d. United Kingdom
ANSWER: China
The International Monetary Fund on Oct 4, 2016 released the World Economic Outlook 2016. The report projects global growth at 3.1 percent in 2016 with slight increase to 3.4.
- Persistent stagnation, particularly in advanced economies, could further fuel anti-trade sentiment stifling growth
- Growth in emerging Asia and especially India continues to be resilient and India’s GDP is projected to expand at 7.6 percent in 2016 and 2017, considered the fastest pace among the major global economies
- The IMF urged India to continue reform of its tax system and eliminate subsidies to provide more resources for health care, infrastructure and education
- Advanced economies will expand just 1.6 percent in 2016 less than 2.1 percent pace of 2015- forecast is .2 percent below the July forecast which was 1.8 percent
- The IMF has marked down its forecast for 2016 to 1.6 percent from 2.2 percent forecasted in July
- US growth is likely to pick up to 2.2 percent in 2017
- Following the Brexit referendum of June, IMF has forecasted that UK growth will slow down to 1.8 percent in 2016 and 1.1 percent in 2017
- The EU area will expand 1.7 percent in 2016 and 1.5 percent in 2017, as against 2 percent growth in 2015
- Japan, the world’s number three economy will remain subdued at 0.5 percent in 2016 and 0.6 percent in 2017
- In the emerging markets and developing economies, growth will accelerate for the first time in six years to 4.2 percent, slightly higher than the July forecast of 4.1 percent
- In 2017, emerging economies are expected to grow at 4.6 percent
- China’s economy, the world’s second largest is forecast to expand 6.6 percent in 2016 and 6.2 percent in 2017 down from the growth of 6.9 percent in the previous year
- Sub-Saharan Africa’s largest economies continue to struggle with lower commodity revenues weighing in on growth in the region
- Nigeria’s economy will shrink to 1.7 percent in 2016 and South Africa will barely expand
- By contrast, several of the region’s non-commodity exporters including Cote d’Ivoire, Kenya, Ethiopia and Senegal will grow at a more robust pace of greater than 5 percent in the year
- Economic activity in the region slowed as several countries are mired in recession, with recovery expected to take hold in 2017
- Venezuela’s output is forecast to 10 percent in 2016 and will shrink another 4.5 percent in 2017
- Brazil will see a contraction of 3.3 percent in 2016 yet it is expected to grow at 0.5 percent in 2017 on the assumption of declining political and policy uncertainty and waning effects of past economic shocks
- Countries in the Middle East are also confronting challenging conditions from subdued oil prices and civil conflict as well as terrorism.
