IMF lowers India's growth forecast over demonetisation, GST

Oct 11, 2017, 02:50 AM

The International Monetary Fund has lowered India’s growth projection to 6.7 per cent in 2017, 0.5 percentage points less than its previous two forecasts in April  and July, attributing it to demonetisation and introduction of the GST. It also lowered the country’s growth for 2018 to 7.4 per cent, 0.3 percentage points less than its previous two projections in July and April.  India’s growth rate in 2016 was 7.1 per cent, which saw an upward revision of 0.3 percentage points from its April report. “In India, growth momentum slowed, reflecting the lingering impact of the authorities’ currency exchange initiative as well as uncertainty related to the midyear  introduction of the country-wide Goods and Services Tax,” the IMF said in its latest World Economic Outlook report.