India’s Prime Minister Narendra Modi has praised the country’s continued strong performance in economic growth as it is expected to top the ranking of the ten fastest-growing major economies in 2024.
According to the International Monetary Fund’s (IMF) July 2024 World Economic Outlook update, India’s real GDP growth is projected to reach 7 per cent this year, ensuring it remains the fastest-growing major economy worldwide.
The IMF report, a key indicator of global economic trends, indicates that India will outpace both the United States and China in real GDP growth this year. The U.S. is projected to grow at 2.6 per cent, while China is expected to expand by 5 per cent. This marks the third consecutive year that India has outperformed these two major economies, having achieved similar success in 2022 and 2023.
Despite a projected slowdown in growth, India is expected to maintain its position as the world’s fastest-growing large economy.
The World Bank’s latest Global Economic Prospects report predicts that India’s economy will expand by 6.6 per cent in 2024, down from 8.2 per cent in 2023, driven by robust domestic demand and increased investment. This growth is also propelling South Asia to become the fastest-growing region globally.
The World Bank report also suggests that global economic growth will stabilise at 2.6 per cent in 2024 after three years of decline, though risks to the global economy remain predominantly negative.
The East Asia and Pacific region, which includes China, South Korea, ASEAN nations, and Pacific island countries, is forecasted to slow to 4 per cent growth this year, down from 4.2 per cent. China’s economic growth is expected to decrease to 4.8 per cent from 5.2 per cent, affected by ongoing challenges in the property sector, weak retail sales, and declining business sentiment.
Indonesia and Vietnam are predicted to be standout performers in the region, with growth projections of 5 per cent and 5.5 per cent, respectively.
Among advanced economies, Japan’s growth is projected to slow to 0.7 per cent in 2024, down from 1.9 per cent the previous year, as consumption growth weakens, exports decline, and tourism stabilises. The U.S., however, is expected to maintain steady growth at 2.5 per cent for the second consecutive year in 2024, with potential for even stronger performance.
The World Bank notes that global inflation is expected to average 3.5 per cent this year, with interest rates likely to remain high worldwide, posing challenges for developing economies.
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