WASHINGTON: The IMF today trimmed India’s annual growth forecast by 0.4 percentage points to 7.2 per cent for 2017, citing the impact of demonetisation.
“In India, the growth forecast for 2017 has been trimmed by 0.4 percentage point to 7.2 per cent, primarily because of the temporary negative consumption shock induced by cash shortages and payment disruptions from the recent currency exchange initiative,” the International Monetary Fund (IMF) said in its latest annual World Economic Outlook (WEO).
The World Economic Outlook was released here before the start of the annual Spring Meeting of the International Monetary Fund and World Bank.
“Medium-term growth prospects are favourable, with growth forecast to rise to about eight per cent over the medium term due to the implementation of key reforms, loosening of supply-side bottlenecks, and appropriate fiscal and monetary policies,” the IMF report said. (AGENCIES)
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