IMF Highlights Sharp Deceleration Of Investment And Slowing Private Consumption In India

According to IMF's Regional Economic Outlook for Asia-Pacific, in India, amid a sharp deceleration of investment and slowing private consumption, growth slipped to 5.8% (year over year) in the first quarter of 2019. Growth decelerated further, to 5%, in the quarter through June 2019, weighed down by sector-specific weaknesses in autos and real estate as well as lingering uncertainty about the health of nonbank financial companies. India is set to grow by 6.1% in 2019 and 7% in 2020 (down 1.2 percentage points for 2019 and 0.5 percentage point for 2020 since the April forecast), due to weaker private consumption and investment. Growth will be supported by the lagged effects of monetary policy easing, a reduction in corporate income tax rates, recent measures to address corporate and environmental regulatory uncertainty, and government programs to support rural consumption.

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