Question
The International Monetary Fund’s (IM
- F July World Economic Outlook Update retained India’s projected GDP growth rate for 2017-18 at 7.2%, and at 7.7% for 2018-19. The IMF added that while activity slowed following demonetisation, growth for 2016-17 was higher than anticipated on the back of government spending and stronger momentum in the first part of that year, as revealed by data revisions. _______________________. “While activity slowed following the currency exchange initiative [demonetisation], growth for 2016 — at 7.1% — was higher than anticipated due to strong government spending and data revisions that show stronger momentum in the first part of the year.” The IMF had in April update had projected GDP growth in India at 7.2% and 7.7% in the financial years 2017-18 and 2018-19, respectively. The July update retained those projections.
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