- The World Economic Outlook (WEO) is an IMF report that provides analysis and forecasts of economic developments and policies in its member countries.
- The report encapsulates state of the global economy and highlights risks and uncertainty that threaten growth
Recent report- Highlights
Report on Global Growth:
- The report has reduced its global growth projection to 2.9 percent in 2019, 3.3 percent in 2020 and 3.4 percent for 2021.
- The global growth forecasts has been reduced due to sharper than expected slowdowns in India and other emerging markets.
- But the report has said that a US-China trade deal is an expected sign that trade and manufacturing activity may soon recover.
Concerns:
- Rising geopolitical tensions between the United States and Iran could disrupt global oil supply, hurt sentiment and weaken business investment.
- Social unrest across many countries could disrupt activity, complicate reform efforts and weaken sentiment dragging the growth lower than projected.
Report on India:
- The report has revised downward India’s gross domestic product (GDP) growth projection to 4.8% for the financial year 2020 (FY20) and 5.8% for FY21.
- The downward is attributed to the current slowdown in the country, stress in the non-bank financial sector and weak rural income growth.
- However, the growth is expected to pick up to 6.5 percent in FY22, supported by monetary and fiscal stimulus as well as subdued oil prices.
