New Delhi: The International Monetary Fund (IMF) has revised its projection for China’s economic growth this year, raising the estimate to 5 per cent, up from the previous forecast of 4.6 per cent. This update comes as part of the IMF’s latest global economic outlook, released on Tuesday.
Despite this upward revision, China’s growth prospects remain lower than those of neighbouring India. The IMF has also increased its estimate for India’s economic growth, projecting a 7 per cent growth rate, up from the 6.8 per cent forecast made in April. This marks a two per cent lead for India over China in terms of economic growth rates.
The IMF’s update provides a detailed assessment of the world’s major economies, highlighting the robust performance of both India and China. The revision for China’s growth rate is attributed to improved private sector consumption in the first quarter and strong export figures, which are expected to bolster the country’s economic performance.
In its broader analysis of the global economy, the IMF emphasised the significant role of emerging Asian economies, particularly India and China, in driving global growth. The organisation reiterated its view that these two nations are the principal engines of the global economy.
For the global economy, the IMF has maintained its growth forecast at 3.2 per cent for this year, underscoring the steady pace of economic activity worldwide. The sustained growth in India and China is seen as a critical factor in supporting the overall global economic landscape.
The IMF’s latest projections reflect a cautiously optimistic outlook for the world’s second-largest economy while underscoring India’s stronger growth trajectory. As both nations continue to navigate the complexities of the global economic environment, their performance remains a key determinant of broader economic trends.
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