IMF Revised Its Earlier Growth Projections

According to the International Monetary Fund, the economy of world is entering a major downturn after the recession of 1930. It has also revised the growth projection of India for the current financial year. The international financial body said that Indian economy growth rate can slip to 7.9% from 8% in 2008-09 and 6.9 per cent for the financial year 2009-10. It holds responsible to weakening economic activity in the world for global financial crisis. However, the Indian government said in a statement that it would ensure sufficient liquidity in the country and maintain growth rate of 8 percent.

The fund projected the global output would also witness slowdown following global slowdown waves. IMF forecasted 3 percent growth rate for global output which is the slowest since the financial year 2002. The global GDP was growing by 4 years till 2007. The largest economy of the world, US would grow at the rate of 0.1 per cent in 2009 as per the reports of IMF. The growth rate of China would also decrease by 50 basic points and grow by 9.3 per cent.

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