One wonders, what are the effects of the global slowdown in India? While we all may have our own versions to this, perhaps nothing could be as correct or telling as the version from someone who’s working closely with the International Monetary Fund (IMF), right?
So, here it goes. Kristalina Georgieva has recently dropped the ball regarding the effects of the global slowdown in India. She revealed, that the growth this year will actually fall to its lowest rate since the beginning of the decade and while things appear bad for the entire globe, India would be feeling the jitters seriously.
But there’s more depth to her claims than just a tell-all statement. That the global economy is witnessing a ‘synchronized slowdown’, which would perhaps result in a serious slower growth for 90 percent of the world (this year) may hurt India in a more ‘pronounced way,’ made the highlight in a recent media address.
Central to her insight was the fact that even some of the most promising and largest emerging economies such as India are going to get a serious hit as a result of the tectonic global events.
Her insights and findings of the revered International Monetary Fund are soon to be released next week in the World Economic Outlook which will capture the downward revisions for 2019 and 2020.
The statements thus point to a clear picture for the world’s largest democracy that the effects of the global slowdown in India won’t come any easy, whether for those in jobs or in the sphere of self-employed businesses or part of start-ups.
“In 2019, we expect slower growth in nearly 90 per cent of the world.” She continued to add, “the global economy is now in a synchronized slowdown.”
And that’s not all. There were more telling highlights in her address.
Despite this overall deceleration, close to 40 emerging market and developing economies are forecast to have real GDP growth rates that are above 5 percent, which includes- 19 in Sub-Saharan Africa, the IMF Chief went on to add.
“In the United States and Germany, unemployment is at historic lows. Yet, across the advanced economies, such as the United States, Japan, and those in the European Union, there seems to be a softening of the economic activity,” she would add further.
“In some of the largest emerging market economies, such as India and Brazil, the slowdown is even more pronounced this year than previously. In China, the growth is gradually coming down from the rapid pace is saw in the past several years, “formed the IMF Chief’s key insights on regions that are usually spurred by high economic activity.
But on that count, one is curious to know what lies in the course of the future? Now that the effects of the global slowdown are hampering both developed and developing economies, what can be expected ahead?
“Now is the time for countries with room in their budgets to deploy — or get ready to deploy — fiscal firepower.
“In fact, low interest rates may give some policymakers additional money to spend,” she noted.