The International Monetary Fund (IMF) on Thursday termed the Indian economy a bright spot in an environment of increased global uncertainty.
In its latest report on global prospects and policy — “IMF Developments, Outlooks, Risks”, the IMF noted that India will benefit from recent policy reforms, a consequent pickup in investment and lower commodity prices.
“Strong domestic demand in India should also be a positive factor in 2016,” the IMF said.
The report lists three significant transitions weighing on the global outlook. These include the Federal Reserve’s likely normalizing of monetary policy, a slowdown in Chinese growth and the end of the decade-long commodity super cycle.
The IMF expects the global economy to grow 3.6 percent next year, contingent on a confluence of favorable factors, with major advanced economies continuing to benefit from supportive monetary conditions and lower commodity prices.
Emerging economies’ growth is projected to rebound in 2016, reflecting mostly a less deep recession or an improvement of conditions in countries in economic distress (eg. Brazil, Russia, and some countries in Latin America and the Middle East).
The IMF warned that Fed lift-off could increase financial market volatility, with potentially disruptive moves in capital flows and asset prices.
The material has been provided by InstaForex Company – www.instaforex.com