India’s growth rate rising; China’s in moderate condition: IMF

China’s growth rate may come down in 2019. The projections of International Monetary Fund (IMF) reveal to be 6.2 percent instead of earlier forecast of 6.4 percent.

Meanwhile, IMF report suggests growth rate of India may grow to 7.4 percent in 2019. It was 7.3 percent this year. However, the new projection is slightly lower than what was calculated in the April 2018 World Economic Outlook (WEO).

In 2017 the growth rate of India was 6.7 percent.

The latest round of trade war of China with United States is said to be responsible for slight decrease in 2019s growth rate. Amid such situation India will retain its position of being the fastest growing major economy in the world for next two years.

In its report the IMF said, “Owing to these changes, our international growth projections for both this year and next are downgraded to 3.7 percent, 0.2 percentage point below our last assessments and the same rate achieved in 2017.”

The report further added that the global economic growth is still in solid condition compared with about a decade ago.

According to April 2018 WEO the inflation in India is rising. In 2018-19 it is projected at 4.7 percent while in 2016-17 it was 4.5 percent. The reasons for inflation are the rising fuel prices and its accelerating demand.