WASHINGTON: The International Monetary Fund on Wednesday raised India’s growth forecast to 5.4 per cent for 2009, even as it projected the world economy to shrink by 1.4 per cent.
In April, it forecast a growth of 4.5 per cent for India. In its update to the World Economic Outlook, the IMF said the global economy would contract by 1.4 per cent. Earlier it had projected a growth of 1.3 per cent. The Chinese economy would expand by 7.5 per cent, as against 6.5 per cent forecast in April, it said.
“The global economy is beginning to pull out of a recession unprecedented in the post-World War II era, but stabilisation is uneven and the recovery is expected to be sluggish,” the IMF said.