Sunday, October 12, 2008

IMF on India & World Economic Present Situation Slowdown

On October 8, 2008, in a press conference on the World Economic Outlook, conducted by Mr. Olivier Blanchard, Economic Counselor and Director of the IMF’s Research Department, the response given to a question by an IMF Staffer is reproduced:

Questioner: What impact do you think the world economic crisis will have on India, and what are your projections for the country? 

Response: Like all other countries, India will be affected by the global slowdown. We are projecting that the growth in India will come down from 8 per cent in 2008 to 7 percent in 2009. But 7 per cent is still a strong rate of growth. That reflects the fact that India is still largely a closed economy, has strong internal growth dynamics, from rapid productive growth, from its process of integration into the global economy that is still continuing. There is some impact from tighter global liquidity conditions, but again we don’t see major drag from this impact on India. So overall, we see the Indian economy continuing to perform well.

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