IMF Current Affairs

Steering Committee of SARTTAC held in New Delhi

Interim Meeting of Steering Committee of International Monetary Fund (IMF)’s South Asia Regional Training and Technical Assistance Centre (SARTTAC) was held in New Delhi.

Officials from all Six SARTTAC Member countries attended the meeting together with Development Partner representatives European Union, United Kingdom, Australia, and USAID  along with IMF staff.

Steering Committee SARTTAC

It endorsed FY 2018 work plan and also approved new work area in Government Finance and Public Debt Statistics. It welcomed progress in securing over 90 percent of the financing for SARTTAC’s first five-year (2017-2022) Phase. It also approved new work area in Government Finance and Public Debt Statistics, where members have expressed strong demand and work is underway to plan future technical assistance and training. The next Steering Committee meeting will take place in Sri Lanka in May, 2018.

South Asia Regional Training and Technical Assistance Centre (SARTTAC)

SARTTAC was inaugurated in February 2017. It is first IMF Regional Capacity Development Centre to fully integrate training and technical assistance activities. It is located in New Delhi, India. It works with Bangladesh, Bhutan, India, Maldives, Nepal, and Sri Lanka. Member countries finance two-thirds of SARTTAC’s Budget, with additional funding from European Union, Korea, United Kingdom, and Australia.

Its goal is to help member countries to strengthen their institutional and human capacity for designing and implementing macroeconomic and financial policies that promote growth and reduce poverty. It will help Governments modernize their economic policies and institutions.

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IMF retains India 2017 GDP growth forecast at 7.2%

The International Monetary Fund (IMF) in its July World Economic Outlook (WEO) Update has retained India’s projected GDP growth rate at 7.2% for 2017-18, slightly up from 7.1% in the previous year.

However, update projects that India’s growth would accelerate to 7.7% in 2018-19. India’s economic growth slowed down to 7.1% in 2016-17, sharply lower than 8% in 2015-16 due to the effect of demonetisation.

Key Highlights of WEO Updates

Global Scenario: The global economic growth rate will be 3.5% in 2017 and 3.6% in 2018. The economic activity in both advanced and emerging and developing economies is accelerating. Moreover, inflation in advanced economies remains subdued and generally below target and also declining in several emerging economies.

United States growth projections are lower than in April WEO update, primarily reflecting that its fiscal policy will be less expansionary going forward than previously anticipated. The growth also has been revised up for Japan and especially the Euro area, indicating solid momentum in activity in late 2016 and early 2017. Growth in the ASEAN-5 economies is projected to remain robust at around 5 % with increase in global trade and strengthening domestic demand.

Indian Economy: It will be fastest growing major economy in the world and in Asia. According to government estimate, Indian economy is expected to grow 7.5% in the current financial year as abundant monsoon as rains are expected to boost rural income and overall growth.

China’s economy: It is projected to grow by 6.7% in 2017, up 0.1% points from the April 2017 forecast, and 6.4% in 2018, up by 0.2% points from earlier forecasts by the IMF. Despite China’s rise in growth projections, India’s economy will still be the fastest growing among large economies.

About World Economic Outlook (WEO)

The WEO is a survey conducted and published by the IMF. It is published biannually and partly updated two times a year. It portrays the world economy in the near and medium context, with growth projections for up to four years into the future. WEO forecasts include key macroeconomic indicators, such as GDP, inflation, fiscal balance and current account of more than 180 countries around the globe. It also deals with major economic policy issues.

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