Growth slowdown in India appears to be temporary, says IMF chief

International Monetary Fund, IMF chief Kristalina Georgieva today said growth slowdown in India appears to be temporary.

Speaking at the World Economic Forum (WEF) 2020 at Davos, she said the world appears a better place in January 2020 compared to what it was when IMF announced its World Economic Outlook in October 2019.

She said the factors driving this positive momentum include receding trade tension after the US-China first phase trade deal and synchronized tax cuts, among others. She, however, said 3.3 percent is not a fantastic growth rate for the world economy.

On Monday, the fund lowered growth estimate for the world economy to 2.9 percent for 2019, citing negative surprises in few emerging market economies, especially India. The IMF also revised downwards its forecast for India to 4.8 percent for 2019-20.