IMF Cuts Global Growth Forecast On India Slowdown

Negative Surprises
Negative Surprises

"The downward revision [to global growth forecasts] primarily reflects negative surprises to economic activity in a few emerging market economies, notably India, which led to a reassessment of growth prospects over the next two years," the IMF said.

In a few cases, this reassessment also reflects the impact of increased social unrest, the lender added.

"There are now tentative signs that global growth may be stabilizing, though at subdued levels," IMF chief economist Gita Gopinath said in a blog.

"The pickup in global growth for 2020 remains highly uncertain as it relies on improved growth outcomes for stressed economies like Argentina, Iran, and Turkey and for under-performing emerging and developing economies such as Brazil, India, and Mexico," she said.

There are no clear signs of a turning point and there is simply no room for complacency, Gopinath added.