India’s growth on a fast pace
India is projected to be growing at the fastest pace. It is likely to grow at 7.5 percent in 2016 and 2017 as China slows to 6.3 percent in 2016 and 6.0 percent in 2017.
The slower pace of China’s growth was attributed to the weaker investment growth. This pace would seem to continue as long as the economy continues to rebalance.
Sources from the International Monetary Fund said that India and the rest of the emerging Asia are generally projected to continue growing at a robust pace.
At the same time, some countries are facing strong headwinds from China’s economic rebalancing and global manufacturing weakness.
India is major net commodity importer. This would help in continuing the growth at a faster pace among all the other emerging economies.
The growth is projected to increase from 4 percent to 2015-the lowest rate since the 2008-’09 financial crisis-to 4.3 and 4.7 percent in 2016 and 2017 respectively.
The pickup in global activity is projected to be more gradual than in the October 2015 WEO, especially, a modest and uneven recovery is expected to continue with a gradual further narrowing of output gaps.
Risks to the global outlook remain titled to the downside and relate to ongoing adjustments in the global economy. The growth, however, is estimated at 3.1 percent in 2015, it is also projected at 3.4 percent in 2016.
Global growth, currently is estimated at 3.1 percent in 2015, is projected at 3.4 percent in 2016 and 3.6 percent in 2017 with growth in advanced economies projected to rise by 0.2 percentage point in 2016 to 2.1 percent, and hold steady in 2017.
In emerging market and developing economies, policymakers need to manage vulnerabilities and rebuild resilience against potential shocks while lifting growth and ensuring continued convergence toward advanced economy income levels, the WEO suggested.