IMF Chief expects improved momentum for India

IMF chief Kristalina Georgieva has asserted that the growth slowdown in India appears to be temporary and the momentum should improve going forward. While speaking at WEF 2020, she also said that the world appears a better place in January 2020 compared to what it was when IMF presented its World Economic Outlook in October 2019. She attributed this improvement to a number of factors that include the receding trade tension after the US-China first phase trade deal and synchronised tax cuts. However, she stated that on the global growth rate of 3.3, “It is still sluggish growth. We want fiscal policies to be more aggressive and we want structural reforms and more dynamism.” Besides India, she also alluded to “some bright spots like Indonesia and Vietnam”, adding that a number of African countries are doing very well, even as some of the others like Mexico are not.